The Kerala Financial Corporation (KFC) has enhanced the upper loan limit under the Chief Minister's Entrepreneurship Development Programme (CMEDP) to ₹2 crore so that Micro, Small and Medium Sector enterprises (MSMEs) receive loans at 5% interest rate.
Industrial units must have MSME registration and the age of the chief entrepreneur should be below 50 years. The age limit for SC/ST entrepreneurs, women entrepreneurs and non-resident Keralites is 55 years.
Loans are available for starting new ventures and modernising existing ones. The loan will be made available up to 90% of the project cost. Large projects will get even higher disbursements, in which case, loans up to ₹2 crore will be sanctioned at 5% interest rate and the balance at normal interest rates. The repayment period is up to 10 years.
The corporation has so far assisted a total of 2,122 units under the scheme, and the target is to lend loans to 2,500 enterprises in five years at the rate of 500 enterprises every year, for which the corporation will set aside ₹500 crore every year.
