National

Kerala Financial Corp launches ‘Rebuild’ scheme for flood-hit units

Vinson Kurian THIRUVANANTHAPURAM | Updated on September 17, 2018

The Kerala Financial Corporation has launched a scheme to support flood-affected units in the State originally financed by the Corporation, and rebuild themselves.

Under this, it offers an additional loan of 90 per cent of the fund requirements for replacing or repair of machinery, maintenance cost, raw material procurement, or even in working funds.

The repayment period will be eight years including a moratorium period of two years at a lower interest rate of 10 per cent and 100 per cent waiver of processing fee.

Even the insurance claim can be adjusted in the loan account as per terms of the scheme — 'Rebuild,' an official spokesman said, giving out the details.

Fresh assistance shall not be denied merely for want of additional fresh security as per Master Direction issued by the Reserve Bank of India for natural calamities, he added.

The Corporation may also consider loans to non-customers under the 'Rebuild' scheme, provided those units do not have any ongoing commitment to other banks/financial institutions at present.

The unit being considered should have been working well, have a healthy balance sheet, be viable and secured. However, no bank takeover shall be allowed under the scheme.

'VIKAS' FOR CONTRACTORS

Loans up to Rs 20 crore will be given to contractors for executing government works -- roads, buildings and bridges. The loan will be limited to 80 per cent of contract work at interest rate from 10 per cent.

Contractors can also have an overdraft or a 'line of credit' facility, so that a limit is sanctioned and contractor can undertake many works within the limit. Up to 50 per cent waiver of processing fee will be granted. KFC will also extend the performance guarantee required for the contract work.

Where the contractor has submitted bill to the department concerned after completing the work and if the bill is accepted, it can be discounted at Kerala Financial Corporation with an attractive interest rate of 10 per cent.

The contractor will be paid with the bill amount by the Corporation and the amount received from the government will be adjusted in the loan account.

Up to 50 per cent of waiver of processing fee is also on offer. The scheme has a government subsidy of 5 per cent and hence the promoters need to pay only 5 per cent interest.

Published on September 17, 2018

Follow us on Telegram, Facebook, Twitter, Instagram, YouTube and Linkedin. You can also download our Android App or IOS App.

This article is closed for comments.
Please Email the Editor

You May Also Like