The Kerala Financial Corporation (KFC), which has launched a number of stimulus packages for the revival of the economy in the wake of the pandemic, has slashed interest rates for entrepreneurs in connection with the New Year.
New loans will be available at a base rate of 8%. This is the first time in the history of the KFC that loans are being provided at such a low interest rate.
Tomin J. Thacahankary, chairman and managing director, KFC, said on Thursday that the aim was to disburse special loans worth ₹1,600 crore over the next three months. Special arrangements had been made to expedite the disbursement of such loans based on project reports. No prior licences or permits were required. Those securing the loan would have to produce the licences within three years. The applicant would get a quick decision on the loan after conducting a face-to-face interview with the top officials at the headquarters via videoconference.
Securities which had been twice the amount of the loan were earlier reduced to half now. Instead of the security requirement of ₹1 crore to take out a contractor loan, security worth ₹50 lakh would be enough.
The new law requires that buses plying in Thiruvananthapuram, Ernakulam, and Kozhikode be converted to CNG-powered or electrical vehicles if they are to run for more than 15 years. “Loans up to ₹5 lakh will be provided for older buses depending on the number of cylinders for converting to CNG,” the CMD said.