Thiruvananthapuram, Kerala Financial Corporation (KFC), the state-owned Financial Institution, will aim to double its loan portfolio to Rs 10,000 crores within five years, State Finance Minister KN Balagopal said on Wednesday.
The Finance Minister said this while addressing the entrepreneurs at the inaugural function of the second phase of the Chief Minister's Entrepreneurship Development Programme (CMEDP 2.0), implemented by KFC.
The Minister also handed over loan sanction letters to entrepreneurs under the CMEDP and Startup Kerala schemes. The event also showcased a few innovative products from the Startups funded by the Corporation.
The CMEDP 2.0 which was announced by the State Government on the fifth of November this year, saw a high surge in the number of applications and so far, more than 130 loans have been sanctioned.
“The state envisages KFC to emerge as a financial supermarket assisting entrepreneurs at low-interest rates and easy terms. To consummate this, the Government will introduce new schemes and broaden the horizons of the Corporation’s activities”, the Finance Minister said.
KFC, an organization with a renowned heritage of 68 years in lending, has handled various Government sponsored schemes over the years in addition to Project Financing.
“Digital lending and Technological updates will be the core of KFCs Development over the coming years. The State Government and entrepreneur community has always supported us in our continued progress,” said Sanjay Kaul, CMD, KFC, while delivering the welcome address.
Over 1700 loans were sanctioned in the first phase of the CMEDP scheme, which was rolled out in July 2020. In the second phase, the loan limit has been enhanced to Rs 1 crore from Rs 50 lakh whilst the interest rate was slashed from 7% to 5%.
The scheme finances up to 90% of the project cost, that too in simple terms. KFC also provides training and handholding to first-line entrepreneurs, new to the business world.
The event was presided over by Adv.VK Prasanth, MLA, S Harikishore, Director Industries and Commerce, delivered the special address. The State Government proposes to assist 2500 enterprises under the scheme.
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