karnataka state financial corporation
Embed Size (px)
Transcript of karnataka state financial corporation
Your partner in progressKaushik Mukherjee, IAS, Managing DirectorKSFC has been playing a vital role in the development of Micro, Small and Medium scale Enterprises (MSMEs) in the State of KarnatakaKSFC an ISO 9001:2000 certified organization
KSFC is one of the fast track term lending financial institutions in the country Assistance to over 1,63,643 units amounting to nearly Rs 10,465 crore over the last 52 years in the State of Karnataka. KSFC is one of the robust and professionally managed State Financial Corporations.
KSFC to have assisted many industries that are internationally recognised like INFOSYS BIOCON
ServicesFinancial services Infrastructure development Term loan
5Term loanKSFC has 23 schemes under term loan
LENDING POLICY NORMS AND PARAMETERS Lending Policy Of The Corporation:The Corporation formulate lending policy at the beginning of each financial year.lending policy covers various aspects like the group exposure, thrust sectors, sectors in the negative list, promoters contribution, security margin, collateral security norms etc
Policy On Minimum Loan SizeMinimum loan size of Rs.5.00 lakhs, except medical and veterinary doctors where minimum limit is Rs.2.00 lakhs.Minimum size of the loan for others is reduced to Rs.2.00 lakhs in case of existing units going in for expansion /modernisation.
In respect of existing units operating successfully, maximum limit can be extended for category I. Rs. 800.00 lakh II. Rs. 2000.00 lakh
In respect of category (II) the financial assistance can be sanctioned provided the paid up capital and free reserves do not exceed Rs. 2000.00 lakh.If the requirements of the funds for project is substantial and cannot be extended by the corporation alone, then the requirements of loan of such projects can be met in association with other financial institutions.Minimum loan size is Rs. 5. 00 lakh.
The minimum promoters contribution of the total project cost prescribed in various schemes varies between 22.5% and33.3% Depending on the location of the project, various schemes of SIDBI operated by the Corporation, class of entrepreneur etc.
SecurityIn addition to the primary security i.e., assets financed by the Corporation, collateral security as per the lending policy of the Corporation is insisted. The collateral security requirement depends upon the type of project, location, sector, quality of primary assets etc.
Repayment PeriodThe repayment period of the term loan varies between 3 to 8 years including termination period of maximum 2 years depending on the period of implementation.In respect of corporate loan, the maximum repayment period is 36 months including six months of termination.
Rate of Interest
Category of loansRate of interestLoans up to Rs. 25 lakh10.50%Loans above Rs.25 lakh11.00%Non SSIs& MSI11.00%Corporate Loan12.00%Area Of OperationThe Corporate extends financial for an enterprise in the state of Karnataka with its network of 30 branches covering all the districts of the state.
Application Forms For LoanLoan application forms are issued after the proposal is cleared in the project Clearance Committee (PCC) meetingFor loan proposals upto Rs. 50.00 lakh Branch offices will issue the application forms.For loan proposals above Rs. 50.00 lakh, loan application are issued at Head Office.
General SchemeFor establishment of newTiny/SSI/MSI/ Service Units ExpansionModernizationDiversification of Existing Units.
Repayment periodRepayment period : Maximum of 8 years with a termination period upto 2 years normally. In extremely deserving cases, the maximum period can go upto 10 years.
Project CostThe project cost shall not exceed Rs. 12.00 crore for SMEs. The project cost can go up to Rs. 20.00 crore in respect of service and infrastructure projects.
EligibilityProjects which are eligible to be financed as per Criteria the SFCs' Act
Assistance To Construction/ Infrastructure RelatedActivities
For establishing Commercial Complexes,Residential ApartmentsDevelopment of Residential Layouts,Group HousingIndustrial EstatesParksGodowns
WarehousesAcquisition of Ready built Offices/New Office BuildingSales Outlets/Showrooms andInfrastructure projects like Flyovers, Bridges etcConstructionDevelopment and Maintenance of Roads
EligibleIndividuals, firms, companies and other eligible constitutions.
Promoters contributionMinimum promoters contribution shall be contribution 25% of project cost.
Assistance To Tourism
Amusement ParksConvention CentresHotels and RestaurantsTravel and TransportTourist Service AgenciesMobile Canteen / Catering
26EligibleSole proprietorships, partnerships, co-operative societies.Private / public limited companies.
Credit Linked Capital Subsidy Scheme (CLCSS)The objective of the scheme is to facilitate technology upgradation of Micro and Small Enterprises (MSEs) in specified products / sub-sectors by providing 15% capital subsidy for induction of proven technologies approved under the scheme.
The list of products / sub-sectors covered under the scheme is as per the approval of the Governing and Technology Approval Board (GTAB) constituted under this scheme.
Eligible Sole proprietary concerns, partnerships, co-operative societies, private and public limited companies.
Single Window SchemeTo provide loan both for fixed assets and working capital to tiny and small scale units Project cost -Rs 35 lakhs Working capital requirement -Rs. 15 lakhs
Assistance For Construction Of RoadsFor acquiring capital goodsEquipment including road rollers, asphalting unitsConcrete mixtures, tippers, excavators,Surveying and other supporting equipment towards development, maintenance and construction of roads.
EligibleAny reputed civil contractors / firms/companies.
Repayment /Security/ Contribution Repayment period: up to 6 years excluding termination period varying between 6 to 9 months.Security: 100% on all loans.Promoter contribution : 25% of project cost.
General Corporate Loan SchemeShort term loans to the units who require urgent working capitalFunds either to meet the gap in the working capital requirements or funds required for executing the rush of orders.
This loan is also considered for developing / expanding new markets and opening LC for purchase of new equipments till a term loan is sanctioned and released by the financial institutions.
The Corporation also extends corporate loan for meeting the statutory dues to the Government like payment of Income Tax, Sales Tax, Excise Duty etc.
EligibilityExisting units eligible for financial assistance from KSFC under the SFCs' Act, 1951 are eligible to be covered under the scheme.
Repayment periodNot exceeding 24 months including termination period of 6 months (maximum)
Privileged Entrepreneurs SchemeTo meet short term funds requirements of the existing units which are under thrust / normal sectors of lending policy of the Corporation.
EligibleProprietary concern, partnership firm, private and public limited companies.
TECHNOLOGY UPGRADATION FOR TEXTILE INDUSTRIESTo provide encouragement to textile industrial units (including units in the cotton ginning and pressing sectors) in taking up technologyUpgradation and to modernize their production facilities
EligibleSole proprietary concerns, partnerships, co-operative societies, private and public limited companies in textile and cotton ginning and pressing industries.
INTEREST SUBSIDY SCHEME FOR SCHEDULED CASTE / TRIBE ENTREPRENEURSInterest subsidy in respect of loans availed by SC/ST entrepreneurs.
SecurityA relaxation of 25% in the requirement of minimum collateral security up to a loan amount of Rs. 25.00 lakhs, be considered in the case of entrepreneurs belonging to Scheduled Caste/ Tribe. For loans more than Rs. 25.00 lakhs, the collateral security requirement shall be as applicable to general category.
Assistance To Doctors/Nursing Homes/Hospitals/Electro Medical EquipmentsFor setting up ClinicsNursing HomesHospitals,For acquiring Electro- Medical Equipment.
Assistance To Entertainment IndustryFor construction and purchase of cinema halls and multiplexesProduction of short TV serials and feature films,Software for visual media publicity.
Assistance To Qualified ProfessionalsAssistance for qualified professionals managementMedical architectsEngineersVeterinary for setting up of business enterprisesPrivate practice and consultancy services in their line of expertise.
48A.M.A.R.A (Assistance For Marketing RelatedActivities)Assistance to small and medium scale existing units with good track record to undertake various activities necessary to increase their sales in the domestic and foreign markets and to create physical marketing infrastructure.
Small Road Transport Operators (SRTOs)Assistance to Small Road Transport Operators to meet expenditure towards cost of Chassis, Body Building, Initial Taxes, Insurance etc.
Assistance For Acquiring Private VehiclesAssistance to individuals, firms and companies Acquisition of vehicles like cars, vans, omni buses, tractors etc.
Acquisition Of ISO 9000 Series CertificationAssistance to existing industrial concerns in the SSI sector having a good track record, to meet expenses on consultancy, documentation, audit certification fees, equipment Calibrating instruments required for acquisition of ISO certification.
Financing Of DG SetsAssistance for acquisition of DG sets/installation and construction of dg set etc.Assistance for acquisition of generators for purpose of hiring vehicles, trailers, DG sets and accessories