An Announcement on 2,000 Collateral-free Loans for Entrepreneurs by Kerala Government

The Chief Minister's Entrepreneurship Development Programme (CMEDP) has been launched and implemented by the Kerala Financial Corporation (KFC), in order to give a helping hand to those people who have become jobless due to the fall of job market caused by COVID-19 pandemic.

Accordingly, a sum of 2,000 loans for potential entrepreneurs has been announced by the CMEDP, which is free of any demanded surety or collateral. These loan amounts will be provided by KFC in a bid to promote the entrepreneurship ventures. As it is sanctioned, to each entrepreneur, up to a maximum of Rs. 1 lakh will be disbursed as the loan.

In this regard, the KFC Chairman and Managing Director Tomin J Thachankary stated that "It is quite difficult for the beginners, especially small-scale entrepreneurs, to raise the capital. Hence, we have decided to take a liberal approach in the sanctions for MSMEs."

He added that once the loan is approves, half of the amount of the loan will be sanctioned in advance, within a week. Out of all the applications, the applications of women and physically-challenged people will be hastened to sanction, in a prior basis. The rate of interest for these loans is 7 per cent; in addition, 3 per cent interest subvention will be there, that this part of the loan is paid by the government. The entire amount should be repaid in a period of three years.

Offering the easy modes such as Google Pay, the KFC simplifies the repayment modes. This very move will be the most liberal and fastest loan that is available in the state, as stated by Thachankary. In the other hand, the corporation will assist with the applicants to acquire MSME registration and PAN card, as well.