Kerala Financial Corporation (KFC) has introduced a machinery loan scheme to help MSMEs in Kerala purchase machinery and equipment. The scheme covers up to 80% of machinery costs, with loans up to ₹5 crore, and requires no collateral due to backing by the government’s credit guarantee fund. Repayment extends up to seven years, including a one-year moratorium, with interest rates as low as 5% for eligible units under the Entrepreneurship Development Program.
Eligibility criteria include MSMEs registered under Udyam and GST, with at least three years of operation and profitability in the past two years. The scheme aims to promote industrial modernization, enhance competitiveness, and support sustainable growth and job creation within Kerala’s industrial sector.
Relevant question for policy stakeholders: How can the outcomes of Kerala Financial Corporation's machinery loan scheme guide the design of collateral-free financing models for MSMEs across India to enhance industrial growth and job creation?
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https://kerala.gov.in/articledetail/OTcxODUxNjk0/0
