Thiruvananthapuram, Sept. 10 -- Giving a major boost to Kerala's small and medium enterprises, the Kerala Financial Corporation (KFC) has rolled out the "KFC Machinery Loan Scheme for MSMEs", a collateral-free financing initiative aimed at helping entrepreneurs purchase new machinery and equipment to modernize their units.
The scheme, backed by the Government of India's Credit Guarantee Fund (CGTMSE), offers loans of up to Rs 5 crore, covering as much as 80 per cent of the machinery cost.
Repayments can be stretched over seven years, with a moratorium of up to one year at the beginning. A key attraction is the competitive interest rate, which starts from 5 per cent for units eligible under the CMEDP Scheme.
To qualify, the promoter must ...