KOCHI: The Kerala Financial Corporation (KFC) expects over Rs 400-crore business with the latest interest cut. The corporation had slashed the base rate from 9.5 per cent to 9 per cent in the New Year. The corporation opted for the biggest rate cut in its history with twin aims – to counter economic slowdown by boosting local entrepreneurship and diversifying its loan portfolio. Finance Minister Thomas Isaac had opined that the rate cut is an excellent opportunity for MSME units.
The KFC has set a target of Rs 1,500 crore business this fiscal. It has already given in-principle nod to project proposals worth Rs 700 crore. “We are planning a slew of measures to process them fast. The existing condition that the entrepreneurs should obtain pre-regulatory clearance for project sanction will be removed. Instead, the entrepreneurs need to complete regulatory formalities, including NoC from local bodies, before sanctioning of the actual loan,” said a senior officer. The KFC plans a sanctioning drive in which all pending applications will be processed before January 31. It expects a business worth over Rs 400 crore through the special drive. KFC’s new CMD Sanjay Kaul has embarked on a technology upgrade which aims to expand the client base and streamlining of sanctioning activities.
“KFC has acquired a new image in the MSME sector as a partner of choice for entrepreneurs,” he said. The KFC plays a major role in the economic development and industrialisation of the state by providing term finance to micro, small and medium enterprises. So far, the corporation has financed more than 50,000 projects. It has posted a net profit of Rs 17.7 crore during the FY 2018-19, registering a growth of 113 pc compared to the previous year and also declared a dividend to its stakeholders.