THIRUVANANTHAPURAM: Finance Minister K N Balagopal has called for more support and assistance for startups in rural areas. He was speaking after inaugurating the StartUp conclave organised by the Kerala Financial Corporation (KFC) on Thursday.
The urban-rural divide is narrow in Kerala in terms of facilities, the minister said. A large number of youngsters are interested in starting ventures in their native place. He urged financial institutions like the KFC to lay more focus on promoting ventures in rural areas. The Zoho Corporation’s rural office model in Kottarakkara is a testimony to the potential of the state’s rural areas to host large businesses, he said.
The state government aims to raise the loan portfolio of KFC to Rs 10,000 crore, he said. The corporation has a diverse customer base ranging from startups to companies with Rs 700-Rs 800 crore annual turnover.
The government took several measures to make the corporation useful to entrepreneurs. The government doubled the capital investment in KFC to Rs 600 crore and slashed the interest rates of loans provided by the corporation.
The upper ceiling on loan amount was raised. At present, the corporation’s loan portfolio is Rs 7,368 crore.
The loan amount for startups was raised from Rs 2 crore to Rs 3 crore. The government is actively considering the demand to raise the upper ceiling on loans for other establishments from Rs 10 crore to Rs 15 crore. Kerala has a promising startup sector that provides an opportunity to realise its entrepreneurial dreams, he said. District Panchayat president D Suresh Kumar presided over the function.