karnataka state financial corporation
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The document discusses various loan schemes offered by KSFC (Karnataka State Financial Corporation) to support MSMEs in Karnataka. Some key details include: - KSFC has been assisting MSMEs in Karnataka for over 52 years, helping over 1,63,643 units with nearly Rs. 10,465 crore in funding. - They offer term loans, infrastructure development support, and financial services to MSMEs across various sectors like manufacturing, services, tourism, infrastructure development etc. - Loan schemes have different eligibility criteria depending on sector, loan amount, security/collateral requirements, repayment periods etc. Interest rates typically range from 10.5% to 12%. - KSFC
karnataka state financial corporation
- 1. Your partner in progress
- 2. Kaushik Mukherjee, IAS, Managing Director KSFC has been playing a vital role in the development of Micro, Small and Medium scale Enterprises (MSMEs) in the State of Karnataka KSFC an ISO 9001:2000 certified
- 3. KSFC is one of the fast track term lending financial institutions in the country Assistance to over 1,63,643 units amounting to nearly Rs 10,465 crore over the last 52 years in the State of Karnataka. KSFC is one of the robust and professionally managed State Financial Corporations.
- 4. KSFC to have assisted many industries that are internationally recognised like INFOSYS BIOCON
- 5. Services Financial services Infrastructure development Term loan
- 6. Term loan KSFC has 23 schemes under term loan
- 7. LENDING POLICY – NORMS AND PARAMETERS Lending Policy Of The Corporation: The Corporation formulate lending policy at the beginning of each financial year. lending policy covers various aspects like the group exposure, thrust sectors, sectors in the negative list, promoters contribution, security margin, collateral security norms etc
- 8. Policy On Minimum Loan Size Minimum loan size of Rs.5.00 lakhs, except medical and veterinary doctors where minimum limit is Rs.2.00 lakhs. Minimum size of the loan for others is reduced to Rs.2.00 lakhs in case of existing units going in for expansion /modernisation.
- 10. In respect of existing units operating successfully, maximum limit can be extended for category I. Rs. 800.00 lakh II. Rs. 2000.00 lakh
- 11. In respect of category (II) the financial assistance can be sanctioned provided the paid up capital and free reserves do not exceed Rs. 2000.00 lakh. If the requirements of the funds for project is substantial and cannot be extended by the corporation alone, then the requirements of loan of such projects can be met in association with other financial institutions.
- 12. Promoters' Contribution The minimum promoter’s contribution of the total project cost prescribed in various schemes varies between 22.5% and33.3% Depending on the location of the project, various schemes of SIDBI operated by the Corporation, class of entrepreneur etc.
- 13. Security In addition to the primary security i.e., assets financed by the Corporation, collateral security as per the lending policy of the Corporation is insisted. The collateral security requirement depends upon the type of project, location, sector, quality of primary assets etc.
- 14. Repayment Period The repayment period of the term loan varies between 3 to 8 years including termination period of maximum 2 years depending on the period of implementation. In respect of corporate loan, the maximum repayment period is 36 months including six months of termination.
- 15. Rate of Interest Category of loans Rate of interest Loans up to Rs. 25 lakh 10.50% Loans above Rs. 25 lakh 11.00% Non SSIs & MSI 11.00% Corporate Loan 12.00%
- 16. Area Of Operation The Corporate extends financial for an enterprise in the state of Karnataka with its network of 30 branches covering all the districts of the state.
- 17. Application Forms For Loan Loan application forms are issued after the proposal is cleared in the project Clearance Committee (PCC) meeting For loan proposals upto Rs. 50.00 lakh Branch offices will issue the application forms. For loan proposals above Rs. 50.00 lakh, loan application are issued at Head Office.
- 18. General Scheme For establishment of new Tiny/SSI/MSI/ Service Units Expansion Modernization Diversification of Existing Units.
- 19. Repayment period Repayment period : Maximum of 8 years with a termination period upto 2 years normally. In extremely deserving cases, the maximum period can go upto 10 years.
- 20. Project Cost The project cost shall not exceed Rs. 12.00 crore for SMEs. The project cost can go up to Rs. 20.00 crore in respect of service and infrastructure projects.
- 21. Eligibility Projects which are eligible to be financed as per Criteria the SFCs' Act
- 22. Assistance To Construction/ Infrastructure Related Activities For establishing Commercial Complexes, Residential Apartments Development of Residential Layouts, Group Housing Industrial Estates Parks Godowns
- 23. Warehouses Acquisition of Ready built Offices/New Office Building Sales Outlets/Showrooms and Infrastructure projects like Flyovers, Bridges etc Construction Development and Maintenance of Roads
- 24. Eligible Individuals, firms, companies and other eligible constitutions.
- 25. Promoter’s contribution Minimum promoter’s contribution shall be contribution 25% of project cost.
- 26. Assistance To Tourism Amusement Parks Convention Centres Hotels and Restaurants Travel and Transport Tourist Service Agencies Mobile Canteen / Catering
- 27. Eligible Sole proprietorships, partnerships, co- operative societies. Private / public limited companies.
- 28. Credit Linked Capital Subsidy Scheme (CLCSS) The objective of the scheme is to facilitate technology upgradation of Micro and Small Enterprises (MSEs) in specified products / sub-sectors by providing 15% capital subsidy for induction of proven technologies approved under the scheme.
- 29. The list of products / sub-sectors covered under the scheme is as per the approval of the Governing and Technology Approval Board (GTAB) constituted under this scheme.
- 30. Eligible Sole proprietary concerns, partnerships, co- operative societies, private and public limited companies.
- 31. Single Window Scheme To provide loan both for fixed assets and working capital to tiny and small scale units Project cost -Rs 35 lakhs Working capital requirement -Rs. 15 lakhs
- 32. Assistance For Construction Of Roads For acquiring capital goods Equipment including road rollers, asphalting units Concrete mixtures, tippers, excavators, Surveying and other supporting equipment towards development, maintenance and construction of roads.
- 33. Eligible Any reputed civil contractors / firms/companies.
- 34. Repayment /Security/ Contribution Repayment period: up to 6½ years excluding termination period varying between 6 to 9 months. Security: 100% on all loans. Promoter contribution : 25% of project cost.
- 35. General Corporate Loan Scheme Short term loans to the units who require urgent working capital Funds either to meet the gap in the working capital requirements or funds required for executing the rush of orders.
- 36. This loan is also considered for developing / expanding new markets and opening LC for purchase of new equipments till a term loan is sanctioned and released by the financial institutions.
- 37. The Corporation also extends corporate loan for meeting the statutory dues to the Government like payment of Income Tax, Sales Tax, Excise Duty etc.
- 38. Eligibility Existing units eligible for financial assistance from KSFC under the SFCs' Act, 1951 are eligible to be covered under the scheme.
- 39. Repayment period Not exceeding 24 months including termination period of 6 months (maximum)
- 40. Privileged Entrepreneurs Scheme To meet short term funds requirements of the existing units which are under thrust / normal sectors of lending policy of the Corporation.
- 41. Eligible Proprietary concern, partnership firm, private and public limited companies.
- 42. TECHNOLOGY UPGRADATION FOR TEXTILE INDUSTRIES To provide encouragement to textile industrial units (including units in the cotton ginning and pressing sectors) in taking up technology Upgradation and to modernize their production facilities
- 43. Eligible Sole proprietary concerns, partnerships, co- operative societies, private and public limited companies in textile and cotton ginning and pressing industries.
- 44. INTEREST SUBSIDY SCHEME FOR SCHEDULED CASTE / TRIBE ENTREPRENEURS Interest subsidy in respect of loans availed by SC/ST entrepreneurs.
- 45. Security A relaxation of 25% in the requirement of minimum collateral security up to a loan amount of Rs. 25.00 lakhs, be considered in the case of entrepreneurs belonging to Scheduled Caste/ Tribe. For loans more than Rs. 25.00 lakhs, the collateral security requirement shall be as applicable to general category.
- 46. Assistance To Doctors/Nursing Homes/Hospitals/ Electro Medical Equipments For setting up Clinics Nursing Homes Hospitals, For acquiring Electro- Medical Equipment.
- 47. Assistance To Entertainment Industry For construction and purchase of cinema halls and multiplexes Production of short TV serials and feature films, Software for visual media publicity.
- 48. Assistance To Qualified Professionals Assistance for qualified professionals management Medical architects Engineers Veterinary for setting up of business enterprises Private practice and consultancy services in their line of expertise.
- 49. A.M.A.R.A (Assistance For Marketing Related Activities) Assistance to small and medium scale existing units with good track record to undertake various activities necessary to increase their sales in the domestic and foreign markets and to create physical marketing infrastructure.
- 50. Small Road Transport Operators (SRTOs) Assistance to Small Road Transport Operators to meet expenditure towards cost of Chassis, Body Building, Initial Taxes, Insurance etc.
- 51. Assistance For Acquiring Private Vehicles Assistance to individuals, firms and companies Acquisition of vehicles like cars, vans, omni buses, tractors etc.
- 52. Acquisition Of ISO 9000 Series Certification • Assistance to existing industrial concerns in the SSI sector having a good track record, to meet expenses on consultancy, documentation, audit certification fees, equipment • Calibrating instruments required for acquisition of ISO certification.
- 53. Financing Of DG Sets Assistance for acquisition of DG sets/installation and construction of dg set etc. Assistance for acquisition of generators for purpose of hiring vehicles, trailers, DG sets and accessories also available.
- 54. Office Automation Assistance to existing units with good track record to acquire items like PCs, Printer, Copier, Fax Machine, Telephone etc.
- 55. Training Institution Assistance to existing units with successful track record for setting up In- House Training Facilities including Construction of Building, acquisition of Furniture, Equipments etc.
- 56. Thank you