Core Financial Products
Since its evolution from humble beginnings in 1961 to being one of the most sought-after Development Financing Institution of the State Government, Kerala State Industrial Development Corporation Limited (KSIDC) has established and augmented a strong reputation for its in-depth understanding of the industrial scenario of the State. The background and performances being built on the solid foundation of astute ability in promoting, facilitating and financing large & MSME sector entities in the State, have provided KSIDC with the ability to provide tailor made financial solutions to meet the growing & diversified requirement for different levels of the projects / business.
Over a period of time, KSIDC has acquired the expertise and required skills to offer a wide gamut of project finance related products & services for business / industrial entities in the State. The KSIDC Team endeavours to be the paramount lender for all business entities in the State at the time of its utmost needs. In order to maximize the returns on a mutually helpful basis, KSIDC has ensured the presence of qualified and experienced professionals who extend their support and care to business entities at all points of time. Now, KSIDC offers financial assistance and support to small, medium and large-scale industries / business in the state, including service sectors like tourism, star category hotels, resorts, hospitals, infrastructure projects etc. Broadly, the financial assistance starts from Rs. 100 Lakhs, and is limited to a maximum of Rs. 6,000 lakhs in a project.
KSIDC's core financial products are tailored to support the entire lifecycle of industrial investment — from greenfield project establishment and plant modernisation to working capital bridging and corporate expansion. As a Government of Kerala undertaking, KSIDC offers competitive interest rates, flexible repayment structures, and sector-specific incentives that distinguish its products from conventional commercial lending.
Why Choose KSIDC Financing?
- Competitive interest rates aligned with RBI-linked benchmarks, with additional concessions for priority sectors and women-led enterprises.
- Flexible repayment schedules including moratorium periods of up to 24 months for project establishment phases.
- Single-window facilitation — KSIDC assists borrowers with land identification, statutory clearances, and subsidy claims alongside financial disbursement.
- Financing available for both new projects (greenfield) and expansion or modernisation of existing units (brownfield).
- Government-backed institution providing stability, transparency, and long-term partnership with Kerala's industrial ecosystem.
General Eligibility Criteria
- Registered companies, partnerships, LLPs, proprietorship firms, and cooperatives are eligible to apply.
- Project must be located within the state of Kerala or have significant economic linkages with the Kerala industrial ecosystem.
- Borrower must not be a wilful defaulter with any financial institution and should have a satisfactory CIBIL credit score.
- Project must be technically feasible, financially viable, and compliant with environmental and statutory requirements.
KSIDC's flagship Term Loan product provides long-term project finance for the establishment, expansion, or modernisation of industrial units in Kerala. It covers the capital expenditure needs of manufacturing, services, and infrastructure projects across all priority sectors identified under the Kerala Industrial Policy 2023.
- Finance for land development, civil construction, plant and machinery, and pre-operative expenses.
- Loan amounts from ₹25 lakh up to ₹50 crore for eligible projects, with higher limits for strategic investments.
- Interest rate linked to KSIDC's base rate with concessions for women entrepreneurs, SC/ST enterprises, and green projects.
- Moratorium period of up to 24 months from date of first disbursement for new projects.
- Collateral security typically includes mortgage of the financed project assets and personal guarantees of promoters.
- Promoter contribution of minimum 25–33% of total project cost required.
The Equipment Purchase Loan is a targeted financial product designed to support existing industrial units seeking to upgrade their production technology, acquire new machinery, or replace outdated equipment to improve productivity and quality standards.
- Finance for purchase of new plant, machinery, equipment, and related installation costs.
- Applicable for both import of capital goods and domestic machinery procurement.
- Faster processing and simpler documentation compared to full project term loans.
- Repayment structured to align with the productive life of the financed equipment.
- Eligible for technology upgradation subsidies under State and Central Government schemes.
- Hypothecation of the financed equipment as primary security; additional collateral for larger amounts.
KSIDC's Corporate Loan is designed for established companies and large enterprises seeking structured financial assistance for major capital investments, plant expansion, or strategic diversification projects in Kerala. This product offers higher loan limits with customised repayment structures.
- Targeted at companies with a minimum 3-year track record and positive net worth.
- Loan amounts above ₹50 crore considered on a case-by-case basis with Board approval.
- Customised repayment schedules linked to projected cash flows from the financed project.
- Syndication with commercial banks or development finance institutions for very large projects.
- Due diligence including technical, financial, legal, and environmental appraisal by KSIDC's in-house team.
- Priority given to investments in focus sectors such as electronics, life sciences, aerospace, and green energy.
The Working Capital Term Loan addresses short-to-medium-term liquidity needs of operational industrial units facing temporary cash flow mismatches due to delayed receivables, seasonal demand cycles, or post-expansion ramp-up periods.
- Finance for raw material procurement, work-in-progress inventory, and receivables bridging.
- Available to units with satisfactory operating track record and positive EBITDA.
- Shorter repayment tenure of 3–5 years with quarterly or half-yearly instalments.
- Can be clubbed with term loan assistance for comprehensive project financing packages.
- Priority processing for units in export-oriented or employment-intensive sectors.
- Interest subvention available for MSME units under applicable state schemes.
Special Financial Products
Bespoke financing instruments crafted to address niche investment needs, sector-specific opportunities, and targeted economic priorities of the Government of Kerala.
The Bill Discounting Loan enables KSIDC-assisted units and eligible enterprises to convert their trade receivables (bills, invoices, purchase orders) into immediate liquidity, bridging the gap between production and payment cycles without straining working capital.
- Discounting of accepted bills of exchange, invoices, and usance bills drawn on creditworthy buyers.
- Available to manufacturing and trading enterprises with established buyer relationships.
- Quick disbursement — typically within 5–7 working days of submission of complete documents.
- Discount rate competitive with market rates, especially for bills drawn on Government and PSU buyers.
- Facility can be set up as a revolving line for frequent users, reducing per-transaction documentation burden.
KSIDC's Contractor Loan provides working capital and equipment finance to registered civil contractors, infrastructure companies, and construction firms executing Government, PSU, or private sector contracts within Kerala.
- Finance against confirmed Government or PSU contracts — mobilisation advance, machinery hire, and material procurement.
- Assignment of contract receivables and work-in-progress as primary security.
- Loan sanction linked to value and tenure of the underlying contract.
- Eligible for contractors registered with PWD, KSTP, KINFRA, and other Government agencies.
- Repayment structured to coincide with contract payment milestones from the employer.
In line with the Government of Kerala's vision to develop caravan tourism as a distinctive offering within the state's tourism ecosystem, KSIDC offers a dedicated Caravan Loan to entrepreneurs, tour operators, and tourism enterprises investing in caravan-based tourism infrastructure.
- Finance for purchase of caravans, motorhomes, and customised tourism vehicles for Kerala's caravan tourism circuit.
- Eligible applicants include individuals, registered tourism enterprises, and cooperatives with a viable business plan.
- Loan amount covers up to 75% of the cost of the caravan or tourist vehicle (including fitments and accessories).
- Concessional interest rate for projects in eco-sensitive and tribal tourism zones.
- Linked to Kerala Tourism's Caravan Tourism Policy for seamless access to designated caravan parks and sites.
The KSIDC Privilege Card is an exclusive membership card issued to KSIDC's premier borrowers and investors who have demonstrated excellent repayment track records and have made significant contributions to Kerala's industrial ecosystem. Card holders enjoy a curated set of preferential services.
- Priority loan processing — dedicated relationship manager and faster appraisal turnaround for repeat borrowers.
- Preferential interest rate concessions on subsequent loan facilities (up to 0.5% reduction).
- Priority slot access at KSIDC's Industrial Parks and industrial estates for space allocation.
- Exclusive invitations to KSIDC's investor roundtables, B2B meets, and international trade delegations.
- Access to KSIDC's dedicated Investor Help Desk for regulatory navigation and subsidy facilitation.
- Annual recognition at KSIDC's Industrial Excellence Awards for distinguished card holders.
Startup Support
KSIDC champions Kerala's emerging entrepreneur ecosystem through dedicated financial products, mentorship linkages, and facilitation services tailored for early-stage and growth-stage ventures.
Kerala's startup ecosystem has grown rapidly, with over 6,000 DPIIT-recognised startups operating across the state. KSIDC plays a catalytic role in this ecosystem by providing risk capital, patient financing, and facilitation services that bridge the financing gap faced by early-stage and growth-stage enterprises — particularly those led by women, youth, and socially marginalised communities.
How KSIDC Supports Startups
- Dedicated financial products with reduced collateral requirements and concessional rates for DPIIT-recognised startups and innovative MSMEs.
- WE Funding scheme exclusively for women entrepreneurs to promote gender equity in Kerala's business landscape.
- Scale Up Funding for growth-stage startups crossing early revenue milestones and seeking capital for market expansion.
- Facilitation of co-working and incubation space access at KSIDC's industrial parks and affiliated innovation hubs.
- Mentoring connections with KSIDC's industry network, IIM Kozhikode, IIT Palakkad, and Kerala Startup Mission (KSUM).
- Subsidy and incentive claim facilitation for startups eligible under the Kerala Industrial Policy 2023 startup support provisions.
WE Funding (Women Entrepreneur Funding) is KSIDC's flagship initiative to promote gender-inclusive industrial growth in Kerala. It provides accessible, affordable, and collateral-light financial support to women entrepreneurs setting up or expanding businesses across all sectors.
- Available to women entrepreneurs with at least 51% ownership stake in the enterprise (proprietors, partners, or majority shareholders).
- Concessional interest rate — typically 1–2% below KSIDC's standard lending rate for equivalent loan categories.
- Reduced collateral requirement — self-occupied residential property acceptable as security for smaller loan amounts.
- Loan amounts from ₹5 lakh to ₹2 crore under the basic WE Funding window; higher amounts under the enhanced WE+ window.
- Flexible repayment — moratorium of up to 18 months and repayment spread over 7 years.
- Priority processing — dedicated WE Funding desk at KSIDC Head Office and regional offices.
- Linkage with State Government's women empowerment schemes and NABARD refinancing windows.
Scale Up Funding bridges the critical financing gap between early-stage startup capital and full institutional project finance. It provides structured growth capital to promising Kerala-based startups and MSMEs that have demonstrated market validation and are ready to scale operations, expand geographically, or invest in technology.
- Eligible enterprises: DPIIT-recognised startups or MSMEs with minimum 2 years of operations and positive revenue trend.
- Finance for product development, market expansion, working capital, and capacity scale-up.
- Loan amount from ₹25 lakh to ₹5 crore under the Scale Up window.
- Simplified appraisal focused on business model, market opportunity, and founder track record rather than purely asset-based security.
- Eligible for KSIDC's co-investment with Kerala Startup Mission (KSUM) and SIDBI for larger quantum requirements.
- Linkage with KSIDC incubation support and industry mentoring programme for portfolio enterprises.
Beyond financing, KSIDC provides holistic support to integrate startups into Kerala's industrial and investment ecosystem through the following facilitation services:
KSIDC facilitates priority allotment of space at its industrial parks, business parks, and incubation centres for eligible startups. Flexible plug-and-play space available at competitive rates with access to shared amenities, power, and broadband infrastructure.
KSIDC-assisted startups gain access to a curated mentor network comprising industry leaders, successful Kerala entrepreneurs, and subject matter experts. Periodic masterclasses, pitch events, and investor meets are organised exclusively for portfolio companies.
KSIDC's Investor Facilitation Cell assists startups in identifying and claiming applicable subsidies under the Industrial Policy 2023, MSME development schemes, and Central Government startup initiatives. This includes capital subsidy, employment incentive, and stamp duty exemption claims.
KSIDC connects promising startups with domestic and international market opportunities through participation in trade fairs, buyer-seller meets, and Kerala's global investment summits such as Invest Kerala Global Summit. Export-oriented startups are connected with the Kerala Exporters Forum and relevant Export Promotion Councils.
KSIDC's Single Window Facilitation team assists startups in navigating Kerala's regulatory landscape — from company registration and GST compliance to factory licensing, pollution control consents, and FSSAI registrations — through coordinated engagement with K-SWIFT and the Investor Help Desk.
Application Forms
Download official KSIDC application forms, checklists, and supporting document templates for all financial products offered under the Project Financing division.
| Document Name | Category | Format | Download |
|---|---|---|---|
| Term Loan Application Form | Core Products | Download | |
| Equipment Purchase Loan Application | Core Products | Download | |
| Corporate Loan Application Form | Core Products | Download | |
| Working Capital Term Loan Form | Core Products | Download | |
| Bill Discounting Application | Special Products | Download | |
| Contractor Loan Application Form | Special Products | Download | |
| Caravan Loan Application Form | Special Products | Download | |
| WE Funding Application Form | Startup Support | Download | |
| Scale Up Funding Application | Startup Support | Download | |
| Document Checklist — All Loans | Guidelines | Download | |
| Project Report Format (DPR Template) | Guidelines | WORD | Download |
| Financial Projection Worksheet | Guidelines | XLS | Download |
| Rate of Interest Schedule (Current) | Guidelines | Download |
Complete application for greenfield and expansion term loan facilities. Includes promoter details, project description, and financial data annexures.
Download PDFApplication for machinery and technology acquisition finance. Requires equipment quotations and technical specifications as annexures.
Download PDFFor large enterprises seeking structured corporate finance above ₹50 crore. Requires audited financials for 3 years and Board resolution.
Download PDFApplication for operational liquidity support. Requires debtor-creditor statements and last 12-month bank statements.
Download PDFFor discounting of accepted bills and invoices against confirmed orders from creditworthy buyers.
Download PDFApplication for contractors with confirmed Government or PSU contracts. Requires copy of work order and completion certificate history.
Download PDFFor caravan and eco-tourism vehicle finance under Kerala's Caravan Tourism Policy. Requires tourism enterprise registration.
Download PDFFor existing KSIDC borrowers with 3+ year relationship seeking Privilege Card membership. Requires loan account statement.
Download PDFApplication for women entrepreneur funding scheme. Requires proof of ≥51% women ownership (shareholding certificate or partnership deed).
Download PDFFor DPIIT-recognised startups and growth-stage MSMEs. Requires DPIIT certificate, revenue proof, and business plan summary.
Download PDFThe following templates and guidelines assist applicants in preparing complete, accurate loan applications. Incomplete applications will result in delays. Please read the application guidelines carefully before submitting.
Comprehensive checklist of all documents required for loan applications. Includes KYC documents, financial statements, project documents, and statutory certificates required for each loan category. Download Checklist PDF
Standard DPR format as required by KSIDC for project appraisal. Covers promoter profile, product/service description, market analysis, technical parameters, implementation schedule, and financial projections. Download Word Template
Excel-based financial model template with built-in formulae for Projected Profit & Loss, Balance Sheet, Cash Flow Statement, and Loan Repayment Schedule. Pre-configured for standard KSIDC loan terms. Download Excel Worksheet
Current schedule of lending rates applicable to all KSIDC loan products, including standard rates, concessions for priority sectors, and applicable penal interest provisions. Updated periodically as per Board decisions. Download Rate Schedule PDF