KFC announces loans up to Rs 10cr for startups | Kochi News
“The scarcity of capital and the insufficient availability of credit facilities are the major problems facing startups. Start-up entrepreneurs should be encouraged with incentives and assistance on easy terms, ”said KFC CMD Sanjay Kaul.
Startups registered with the Kerala Startup Mission or the Department of Industrial Policy and Promotion, and having a head office in Kerala, will be eligible for this program. Viable projects with a scalable business model and high potential for job creation or wealth creation will be considered under the program.
The aid will be Rs 25 lakh for production, Rs 50 lakh for marketing and Rs 100 lakh for scaling up. This will be subject to 90% of the cost of the project at each stage. The loans will be made at a concessional interest rate of 7% without collateral. The repayment period will be 60 months, including the 12-month moratorium period.
“This is the first program of its kind where all stages of startups are taken into account. KFC will provide mentoring and coaching and there will be liberal exit options, ”Kaul said.
Startups must apply online at www.kfc.org. The processing will be centralized at the head office and the sanction will be examined by a committee of experts.
The loan will be extended to the installation of workshops, the purchase of machines, computers, servers, software, the establishment of infrastructure, the purchase of raw materials, working capital. , working capital, cloud expenses, licenses, permits, consulting fees, marketing expenses, preliminary and preoperative expenses, interest during the implementation period, etc.
The loans will be sanctioned as a subsidized loan with option of conversion into equity provided that KFC’s share does not exceed 30%.
Once startups get a firm purchase order, they are eligible for loans up to Rs 10 crore for order fulfillment. Entities, after due diligence by a registered Sebi venture capital fund, may also obtain risk debt of Rs 10 crore.