Kerala govt to offer KSIDC loans up to Rs 5 crore at 5 pc interest rate

Thiruvananthapuram: Within days after the Kerala cabinet approved the state’s new industrial policy, the government has announced support schemes for enterprises. The limit of the chief minister's financial assistance provided through the Kerala State Industrial Development Corporation (KSIDC) has been increased to Rs 5 crore at an interest rate of 5 per cent. 

Earlier, a minimum of Rs 25 lakh and a maximum of Rs 2 crore was provided at low interest rates through the scheme. Now, the minimum limit has been hiked to Rs 1 crore. 

In addition, the industries department has also decided to provide low interest loans of up to Rs 50 lakh to women entrepreneurs. A project offering incentives for enterprises has also been included in the industrial policy. 

The chief minister's financial assistance scheme was announced to ensure capital aid to small and medium enterprises, start-ups, micro-enterprises and enterprises set up in the state by those living outside Kerala.

As per reports, the action to increase the minimum limit was taken after KSIDC informed the government about the need to increase the loan limits in order to ensure an atmosphere of industrial development in the state.

Furthermore, KSIDC has also prepared a scheme to sanction assistance of up to Rs 1 crore to startups. A project titled ‘WE-Mission’ has been launched with the objective of encouraging entrepreneurship among the women by offering loans up to Rs 50 lakh.