CM’s Special Assistance Scheme

KSIDC > CM’s Special Assistance Scheme
show categories
CM’s Special Assistance Scheme

CM’s Special Assistance Scheme (for MSMEs/Start-Ups/Micro Enterprises & NRKs) in the range of Rs. 25 lakhs to Rs. 2 crores per enterprise and Working Capital Loan Scheme for Micro Enterprises

a) Scheme A – CMs Special Assistance Scheme for MSME/Start-ups/NRKs

Objective:
• Create an enabling environment in the state for MSMEs, Startups and NRKs to avail funding and thrive upon in all aspects
• Provide financial assistance to at least 500 new startups and MSMEs in the state every year
• Ensure the establishment and growth of at least 2,500 new startups and MSMEs in the state during the next five years through this scheme.

Benefits of the Scheme:
• A term loan assistance subject to a minimum of Rs. 25,00,000/- (Rupees twenty five lakhs only) and maximum of Rs. 2,00,00,000/- (Rupees two crore only) may be provided to MSMEs and startups. However, in exceptional cases, up to  the maximum amount of Rs. 5 crores (Rupees five crores only) may be considered based on the project evaluation of the applicant company.
• KSIDC may provide term loan assistance at an interest rate of 10%. However, the entrepreneurs would be provided an interest subvention of 3%, through Government subsidy (Govt. approval for this has to be obtained). The effective interest rate for entrepreneurs would be 7%.
• The term loan assistance will be provided to new entities, as also to existing entities for working capital as well as asset creation.
• Entrepreneurs, selected for the funding assistance, may be provided one-day training on entrepreneurship.

Details of the scheme/eligibility:
• It will be named CMs Special Assistance Scheme for MSMEs, Startups & NRKs. The term loan assistance will be a minimum of Rs. 25,00,000/- (Rupees twenty five lakhs only) and maximum of Rs. 2,00,00,000/- (Rupees two crore only). However, in exceptional cases, up to the maximum amount of Rs. 5 crores (Rupees five crores only) may be considered based on the project evaluation of the applicant company.
• Effective interest rate for entrepreneurs would be 7%.
• Financial assistance shall be provided to all forms of entities i.e., proprietorship, partnership, Company etc.
• Processing fee/upfront fee shall be waived, for loans up to Rs. 1 crore. (For loans above 1 crore, processing fee and upfront fee as applicable for regular term loan).
• Age limit (for proprietor, partners and directors) 18–50 years (Relaxation in age up to 5 years would be provided for Women / SC / ST / NRK entrepreneurs)
• Education Qualification: Not applicable
• Income Limits: Not applicable
• Shouldn’t be a permanent Government employee
• Should have a good CIBIL score i.e., above 650
• Entity must be established and made functional within the State of Kerala
• The promoter’s contribution must be a minimum of 20% (as against the normal 50 %). Loan assistance to the tune of 80% of project cost/scheme, subject to a ceiling of Rs. 200 lakhs shall be provided. However, in exceptional cases, Rs. 500 lakhs may be considered depending on project evaluation.
• Relaxed asset coverage ratio of 1 as against the normal asset coverage ratio of 1.33.
• Moratorium of up to 1 year shall be permitted, however, interest repayment is mandatory during the moratorium period
• Maximum time period of up to 5 years shall be provided for repayment
• Financial assistance shall be securitized by way of land, building, other fixed assets& collateral security. The same will be considered for determining the asset coverage ratio.
• Personal Guarantee of all promoters/directors/partners to be provided

b. Scheme B – CMs Special Assistance Working Capital Loan Scheme for Micro Enterprises.

Details of the scheme/eligibility:
• It will be named Working Capital Loan Scheme for Micro Enterprises.
• The term loan assistance will be a 20 % of average turnover for the last 2 years, limited to minimum assistance of Rs. 5,00,000/- (Rupees five lakhs only) and maximum assistance of Rs. 1,00,00,000/- (Rupees one crore only) or 20 percent of the turnover.
• The entity should have been in existence for the past 3 years
• Average turnover in the immediately preceding 2 financial years shall not exceed Rs.5.00 crores.
• Financial assistance shall be provided to all forms of entities i.e., proprietorship, partnership, Company etc.
• KSIDC may provide term loan assistance at the mid band interest rate of 9.75 % (floating)
• Repayment shall be within 8 years, in monthly instalments.
• Eligible only for manufacturing and trading companies.
• Eligible only for entities with active bank account without any dues before March 2020
• Loan purpose only for working capital. Using of loan for other purposes (Eg: For closing other loans, purchase any other land or machineries or constructions etc.) is not allowed.
• No other loan from the entity shall be considered other than working capital loan.
• Entity must be established and made functional within the State of Kerala
• Asset coverage ratio of 1.33.
• Financial assistance shall be securitized by collateral security of land, building, Bank Guarantee, and bank FD receipt. The same will be considered for determining the asset coverage ratio.
• Personal Guarantee of all promoters/directors/partners to be provided
• Only nominal processing fee of Rs.25,000/-.
• Upfront fee shall be waived.
• No preclosure charges
• Repayment can be only through ECS by the OD account of the company.
• Maximum processing time: 15 working days

***********************

call us now +91 4712318922

Last Updated on: 15 June 2021
സന്ദ൪ശകരുടെ എണ്ണം :1341550