Thiruvananthapuram : In keeping with govenment's recent announcement of relief package against covid conditions, KFC loans have been restructured to ease repayment burden. The restructuring conforms with RBI guideline that allows restructuring of loans without formally classifying them as stressed assets. There will be no extra fees or added interest for the restructured loans and over 3000 borrowers will potentially benefit from the scheme.
20 Percent More Loans
Hard-hit tourism sector and entrepreneurs of small and medium businesses will be granted an additional 20 percent loan. A similar 20 percent in topup loans were allowed last year too. The loan upgrading are all part of KFC scheme. A 24-month period will be allowed for repayment. Rs 450 crores has been set aside for the scheme targetted to benefit over 400 businesses.
Aid for Covid-mitigation units
Units manufacturing Covid mitigation products shall allowed 90 percent loans. The aid will extend to all enterprises producing health equipments and covid mitigation items. Businesses will receive up to 50 lakhs at 7 percent interest under Chief Minister’s Entrepreneurship Scheme with a payback term of 5 years. Higher loans will come at different interest rates. The period of loan period will extend up to 10 years. A total of Rs 100 crores has been set aside for this scheme and will l benefit over 50 enterprises..
Lower interest rate
Interest rates have been lowered for small scale units and enterprises related to health care, tourism. Loans with 9.5 percent interest rate in these categories stand reduced to 8 percent and loans with 12 percent interest rate have been lowered to 10.5 percent. Credit rating would form basis for these rebates. The rebates will become applicable from 1st July. Additional interest levied last year following RBI policy change shall be refunded to borrowers, said Finance Minister KN Balagopal.
