Kerala floods one month after: State Financial Corporation offers liberal loan packages for reviving businesses

THIRUVANANTHAPURAM:  The Kerala Financial Corporation (KFC) has announced loan schemes for rebuilding the industries and service businesses ravaged by the August floods. Special schemes will be offered to contractors to take up infrastructure development works in the affected districts. Besides additional loans to existing customers, the organisation plans to assist non-KFC enterprises with good track record. 

“KFC is offering liberal loan restructuring packages to our customers affected by the floods. Also, we are supporting them with additional loans for repair and maintenance. The appraisal system for additional loans has been made simple to avoid delay and fresh security will not be insisted,” said Sanjeev Kaushik, chairman and managing director, KFC.  

The additional loan will cover a maximum of 90 per cent of the fund requirement of the establishment. It can be utilised for replacing or repair of the machinery, meeting maintenance cost, raw material procurement and working funds.

The repayment period is eight years, including a moratorium period of two years. Interest rate is 10 per cent and there will not be any processing fee. There is also a provision to adjust the insurance claim in the loan account.

Non-KFC customers who want assistance under the rebuild scheme should have a healthy balance sheet, viable and secure operations. Also, they should not be clients of other banks or financial institutions. No bank takeover will be allowed under the scheme. Under the Vikas scheme for contractors, loans up to a maximum of `20 crore will be given to rebuild roads, bridges and buildings. The loan amount will be limited to 80 per cent of contract work. Interest rate starts at 10 per cent. 

Contractors can also have OD facility or line of credit facility, so that a limit is sanctioned and contractor can undertake many works within the limit. There is a 50 per cent waiver of processing fee. When the contractor’s bill is approved by the department, KFC will credit the amount so that the person can start another work.

“KFC wants to support the government’s infrastructure rebuilding exercise by equipping contractors to undertake big works. Performance guarantee and bill discounting facility make the scheme more attractive,” said Kaushik.