Kerala CMEDP loan for MSMEs: Upper limit hiked as scheme turns successful


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Kochi: The borrowing limit of the Chief Minister’s Entrepreneurship Development Programme (CMEDP) was raised to Rs 2 crore. Through this initiative, the small-scale and average-level startups will receive loans up to Rs 2 crore for 5 per cent interest. This year’s budget announcement is being fulfilled through this initiative. The government’s 3 per cent and KFC’s 2 per cent together make the total 5 per cent interest rate.

Kerala Financial Corporation (KFC) has given loans for 2,122 units so far through CMEDP. The programme aimed to grant loans for 2,500 startups in 5 years at the rate of 500 startups per year. The corporation will set aside Rs 500 crore for this purpose every year.

The industrial units with MSME registration are eligible for the loan. The age of the main entrepreneur must be 50 or below. The age limit for reserved categories including SC/ST, women and NRIs is 55. Loans are available for new startups as well as for revamping the existing ones.

As a part of the campaigning program, there is a 50 per cent discount on the processing fees of new MSMEs. Also as a part of World MSME Day, enterprises with high credit ratings will get an added discount of 0.25 per cent.

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