Big relief for entrepreneurs in Kerala: KFC can now offer loans up to Rs 100 crore

Palakkad, Kerala: Small and medium entrepreneurs in Kerala are set to get a major financial boost, with the Kerala Financial Corporation (KFC) receiving approval to provide financial assistance of up to Rs 100 crore for the development and expansion of industrial enterprises.

The lending limit has been increased amid a sharp rise in the number of micro, small and medium enterprises (MSMEs) in the state. The earlier limit of Rs 50 crore was considered inadequate to meet the growing financial requirements of businesses.

With the enhanced lending limit, KFC will be able to ensure greater availability of funds for MSME ventures, including those expanding across industrial hubs such as Kanjikode.

Apart from MSMEs, KFC has also been entrusted by the Industries Department with the role of an agency or intermediary for providing financial support extended by the government to other industrial establishments and public sector undertakings (PSUs), officials said.

The arrangement will remain in force until February 2028 and may be extended if required. Financial assistance will be available not only to new entrepreneurs but also to existing businesses planning expansion.

KFC will have to mobilise the funds required for industrial loans on its own. Its allocation for the previous two years was fixed at Rs 50 crore. Following the increase in the ceiling to Rs 100 crore, KFC can proceed with measures to raise the additional funds.

2.18 lakh MSMEs

The number of MSME ventures in Kerala has increased sharply over the past three years, with 2.18 lakh enterprises now registered in the state.

More than 70 per cent of these registered enterprises are actively operating, according to the available data.