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| KFC cuts interest rates in New Year |
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Thiruvananthapuram: The Kerala Financial Corporation (KFC), which has launched a number of stimulus packages in the industrial economy in the wake of the disasters of 2020, is introducing huge interest rate concessions for entrepreneurs this New Year.
"New loans will be available at a base rate of 8%. This is the first time in the history of KFC that loans are given at such a low interest rate," KFC CMD Tomin J Thachankary said on Thursday.
KFC launches special loans worth 1600 crore over the next three months. Special arrangements have been made to expedite the disbursement of such loans. No prior licenses or permits are required prior to the loan. It is sufficient to produce the licenses within three years, he added.
The loans will be provided believing the project report submitted by the entrepreneurs , without detailed inspections.
To avoid delays in granting loans, applicants no longer have to appear in person at the office. The applicant will get a quick decision on the loan after conducting a face-to-face interview with the top officials at the headquarters via video conference.
Securities, which were twice the amount of the loan, were earlier reduced to half now. For example, where the security requirement was Rs 1 crore to take a contractor loan, now security worth Rs 50 lakh is enough. The CMD said that no other financial institution has such a generous approach.
Increase in profit for KFC during Covid period through better performance.
KFC had provided the facility to convert the interest arrears into loans for entrepreneurs who had difficulty in repaying loans during the Covid period. As the one-time settlement scheme came to an end on December 31, a large number of entrepreneurs took advantage of the scheme, which saw an increase in loan repayments.
So far Rs.150 crore has been recovered under the one-time settlement schemes. In addition, KFC was able to make a financial profit by selling 58 items acquired due to non-repayment.
Since details of defaulters are uploaded CIBIL database, a large amount could be recovered. In addition, KFC started uploading details of defaulters in other credit information companies such as CRIF, Experian and Equifax. This will be a setback for the those who took money from KFC and did not repay it intentionally.
The new law requires that buses plying in Thiruvananthapuram, Ernakulam and Kozhikode are to be converted to CNG or electrical if they are to run more than 15 years old. Loans of up to Rs 5 lakh are allowed for such older buses depending on the number of cylinders for converting to CNG.
Repayments will be on a weekly basis. Upon receipt of the Fitness Certificate from the Department of Motor Vehicles, the amount will be paid directly to the conversion company. The loan scheme will benefit about a thousands of buses in the above three cities.
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