Thiruvananthapuram: Kerala Financial Corporation (KFC), the leading lending institution has come out with a comprehensive programme for funding up to Rs 10 crore for startups.
The Scheme, 'KFC Startup Kerala', will support startups in all stages of their growth starting from proof of concept to prototype development, product trials, market-entry, commercialization and scaling up.
Incidentally, this bonanza comes close on the heels of the announcement made by State Finance Minister K.N. Balagopal in his maiden Budget speech.
Sanjay Kaul, CMD of KFC, said the assistance will be Rs.25 lakh for productisation, Rs 50 lakh for commercialization and Rs 100 lakh for scaling up.
"Loans will be provided at concessional interest rates of 7 per cent without any collateral. The repayment period will be 60 months including a moratorium period of a maximum of 12 months. Startups need to apply online at www.kfc.org. Processing will be done centrally and the sanction will be considered by an expert committee," said Kaul.
Furthermore, there will also be a venture-debt scheme and provision to finance purchase orders received by startups.
"The scarcity of capital and inadequate availability of credit facilities are the major problems confronting startups. Entrepreneurs should be encouraged through incentives and assistance on easy terms", added Kaul.