General long-term loan schemes

Term loan scheme

The corporation extends term loan assistance to new units, expansion, diversification and modernisation schemes as well as for purchase of equipments. The corporation can extend long-term loan up to Rs 150 lakhs to new units promoted by first generation entrepreneurs and for partnership firms up to Rs 90 lakhs. Minimum term loan requirement should be Rs 100 lakhs for new limited companies. Maximum term loan requirement can go up to Rs 600 lakhs.

Scheme for corporate loans

Corporate financial assistance is provided up to Rs 200 lakhs per company with interest rates as per norms.

The period of repayment extends from 5-8 years depending on the cash flow position of the project.

Bridge Loans

Under this scheme financial assistance is provided against Term loan/subsidy sanctioned.

The period of repayment extends from 5-8 years depending on the cash flow position of the project and the interest rates are as per norms.

Assistance for equipment finance

In case the company has not completed four years of operation, but is otherwise found eligible for loan under equipment finance scheme, assistance for purchase of equipment inclusive of the cost of transportation, installation and erection may be considered for the corporation's equipment finance scheme to the extent of Rs 400 lakhs to a company.

Equipment lease finance

KSIIDC provides lease assistance to acquire plant and machinery, without any promoter's investment, to a concern which intends to expand, modernize or diversify its activities. It is offered for replacement of equipment during the process of modernisation/expansion of the plant.

Any industrial concern operational for three years and has earned a net profit during the last two years and should not be a defaulter, such companies are eligible for lease assistance. It is given on new indigenous/imported equipments or second hand imported equipments. The lease period ranges from three to five years depending upon the functional period of the equipments, technological obsolescence, rate of depreciation, perception of risk as well as profitability of the concern.

The mode of repayment is a monthly rental, payable in advance with one-month moratorium or a monthly structuring of lease rentals according to users need. A maximum assistance up to Rs 300 lakhs can be extended.

Advantages

100% finance
Quick financing with simple procedural formalities
Lease rental allowed as tax-deductible expenses
Provision of balance sheet financing
Flexible rental structuring according to user's need
Bill discounting scheme for capital equipments

The corporation also provides deferred credit to the purchasers of Capital goods/Equipments from manufacturing units situated in the state. The bill-discounting scheme is up to Rs 200 lakhs per company.

Eligibility Criteria

Seller (Capital Goods Manufacturer)
All Capital goods / Equipment manufacturing units situated in the state are eligible

Besides, such concerns should have been in production for the last three years, earned net profits for the last two years, been regular in repayment of loans to banks / financial institutions.

Purchaser
The company should be a manufacturing company situated in the state. Besides, such concerns should have a good track record and positive net worth, been regular in repayment of loans to banks / financial institutions and also should be able to provide counter guarantee / bank guarantee for discounting the bills on its behalf.

Special Sector focussed Financial Assistance

Scheme for tourism and its related activities

Proposals for setting up of hotels / amusement parks are eligible for term loans from KSIIDC. Setting up of cultural centres, convention centres, restaurants etc, and expansion / renovation / modernisation of existing hotels are also eligible for financial assistance, provided they are for development of tourism, particularly those catering to the needs of international tourists.

Purpose of the proposal should be:

For providing clean, hygienic accommodation to tourists.
Setting up or development of amusement parks, cultural centres, restaurants, tourist service agencies or commercial complex as part of a tourist home / hotel. Any individuals, partnership concerns, private limited companies engaged in tourism related activities are eligible.

Hospitals

Scheme for small hospitals / nursing homes

Assistance under the scheme is provided for setting up small hospital / nursing homes to those concerns who are willing to provide medical services at concessional rate to low income group patients and which have a minimum 10 bed facility with full time expert services of at least one MD/MS doctor. The margin retained by the Corporation is 25%. The rate of interest shall be applicable as in general category.

|