Kerala State Industrial Development Corporation
0471-2318922 I Malayalam
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.

Usually assistance is extended to projects with an investment of Rs.200 Lakh and above and our term loan assistance is limited to a maximum of Rs.2000 Lakh in a project and it can go up further in a single project with State Government's permission. The definition of the medium and large scale manufacturing industries as defined by the Central Government is applicable to Corporation also.

The norms followed by the Corporation for financial assistance of the projects are given in the table below:

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.

In addition to the above, 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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