Thiruvananthapuram, July 29 (KNN) To provide credit facility to Agro-based industries, the Kerala Financial Corporation (KFC) has launched a new scheme offering loan up to Rs 10 crore at the interest rate of 5 per cent.

Every year the corporation aims to benefit minimum 400 micro, small and medium enterprises (MSMEs).

MSME units from Agro, Dairy & Animal Husbandry related industries, Agro-based-Startups, processing/ marketing/ trading of Agro-based products, food processing units, warehouses, go-downs, cold storage, Agri-infrastructure projects, etc, are eligible to apply for the loan.

Finance Minister K Balagopal had declared the scheme while presenting the State Budget 2022-23

The scheme covers all the financial requirements of the units including setting up of new units, modernization/ expansion/ renovation of existing units, purchase of machinery, working capital needs, etc.

The state government has agreed to bear 3 per cent interest subvention for loans up to Rs 1000 lakh.

Further, KFC will provide 2 per cent subvention. Hence, customers need to pay only 5 per cent.

Minimum amount for the loan is Rs 5 lakh and 90 per cent of the project cost will be given as loan.

For larger projects, loans up to Rs 10 crore can be allowed with interest subsidies and the balance amount with normal interest.

The maximum repayment period will be 10 years including a maximum of two years moratorium.  (KNN Bureau)