CIN : U45309KL1961SGC001937

Project Lending

KSIDC offers financial assistance and support to medium and large scale industries in the State including service sectors like tourism, star category hotels, resorts, hospitals, infrastructure projects, etc and where the constitution of assisted unit is in the nature of Private/ Public Ltd Company.

Normally financial assistance is available for projects with an investment of Rs. 200 Lakh and above. KSIDC’s term loan assistance is limited upto a maximum of Rs. 2000 Lakh in a project and it can go up further for single project prior permission from State Government. The definition of the medium and large scale manufacturing industries, defined by the Central Government is applicable to KSIDC also.

The standard norms for financial assistance of the projects:

Debt Equity Ratio a. 1:1 up to 1.5:1 for new companies with minimum/no track record.
b. 1.5:1 upto 2:1 for companies in the thrust sectors/expansion of good assisted units & other good non-assisted units.
Term Loans Up to Rs. 20 Crore can be sanctioned. No cap for term loan under direct financing. However loan exceeding Rs. 20 Crore is subject to approval by State Govt. The minimum amount considered for assistance is Rs.1 Crore except in case of expansion proposals of assisted units, where the minimum limit would be Rs. 50 lakhs.
Short Term Loan May be considered for assisted units on a selective basis.
Repayment Repayment period is 6-8 years with a moratorium of 2-3 years, on a selective basis.
Interest Rate Based on a sliding scale with interest band ranging from 10.50 - 12.50% for thrust sectors & 11.50 - 13.50% for others.

The project should be financially and technically viable with satisfactory financial indices like Internal Rate of Return (IRR), Debt Service Coverage Ratio (DSCR), pay back period etc, and the promoter directors should execute personal guarantees with the Corporation for the timely repayment of the financial assistance sought. The Thrust sectors as mentioned above comprise Tourism, Hospitals & Infrastructure projects.

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