The KSFC introduced the scheme after the Small Industries Development Bank of India decided to gradually eliminate monetary assistance from the State Financial Corporation (SFC).
According to KSFC managing director M Madangopal, the corporation has requested for soft loan of Rs 200 crore for a period of five years to the state government. It has also suggested the government to introduce a three percent rebate scheme for the SMEs, in case the authorities deny providing the loan, the paper said.
This scheme will bring down the cost of loan and the KSFC products will be ranked equivalent to those of the nationalized banks. However, the state government would require about Rs 50 crore to commence this scheme.
To empower the women of the state, KSFC is also planning to introduce a special scheme, where credit up to five million at four percent interest rate will be provided to women entrepreneurs. The Department of Women and Child Welfare will coordinate in this scheme.
Madangopal also added that, KSFC will offer a one percent rebate on interests to differently abled entrepreneurs and to the eco-friendly enterprises as well.