Kerala Financial Corp extends special loans for construction sector

Kerala Financial Corporation, a leading State Financial Corporation, has special loan schemes for the construction sector which has witnessed a sharp rise in prices of assets/equipment. The decision was taken following a webinar on Tuesday with various crusher associations in the state.

At least 300 members of six leading associations in the quarry-crusher sector had joined the discussion and expressed their concerns to KFC. Tomin J Thachankari, Chairman and Managing Director, said that the Corporation would provide the necessary funding to them at reasonable rates to procure the required assets.

Sets aside ₹500 crore for the scheme

"It is important to introduce modern equipment to operate the crushers scientifically and in an eco-friendly manner so that our precious natural resources can be passed on to future generations to the extent possible,” he said. The Corporation has set aside ₹500 crore for assisting crushers.

The maximum assistance provided to any unit will be 66 per cent of the project cost subject to a cap of ₹20 crore. In addition to term loans, working capital loans will also be provided. This apart, loans will be provided to acquire other crushers as well. The present base rate at which the Corporation lends is 8 per cent.

Upon submission of relevant documents, the loans would be disbursed within a week to units with environmental clearance and other licences. The Corporation requested crusher owners to pass on the benefits of low-cost capital made available to the general public by reducing construction materials’ price.