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Thiruvananthapuram: The Kerala State Industrial Development Corporation (KSIDC) and Department of Non Resident Keralite's Affairs (NORKA) with the support of South Indian Bank (SIB) have decided to offer loan up to Rs 2 crores for 150 entrepreneurial ventures of expats who returned to Kerala due to the pandemic.
The offer is based on the relief package announced by state government. The interest rate is 5 per cent. In this regard, KSIDC and NORKA have signed a memorandum of understanding with SIB.
Eligibility criteria
An individual who has worked in a foreign country for at least two years and have returned to Kerala are eligible to apply for the loan. The financial aid is provided for small and medium scale (MSME) ventures in manufacturing and service sectors.
A loan amount from Rs 25 lakhs to Rs 2 crores can be availed. The validity of the loan is for five years. Though interest rate is 8.75 per cent, there is 3.75 per cent subsidy as a part of Covid-19 relief project, thus limiting the interest rate at 5 percent for four years. But in the final year of loan, the entire 8. 75 per cent need to be paid.
Six-month moratorium period for repayment
For loan repayment, there will be a moratorium period of six months. Notably, moratorium is only for the principal amount. Interest should be given and after six months, both principal amount along with interest need to be paid.
The individuals can start any type of MSME. The venture can be of any format that abide by the rules and regulations. However, if more than one member is involved in running the venture, then all the respective members of the venture need to produce their individual guarantee for availing the loan.
The individuals need to submit a proper project report before KSIDC for review and approval. A committee including a NORKA has been constituted for this. Processing charge up to Rs 1,00,000 will be exempted from the application. Also there won’t be GST.
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