Kochi: Kerala State Industrial Development Corporation Ltd. (KSIDC), a State owned Enterprise under the Industries Department, has introduced a scheme for reduction of interest for loans without arrears at the end of the financial year. The proposed reduction in interest rate shall be 1%; maintaining a minimum rate of interest at 10%.
This was announced by KSIDC Officials at an interactive session held with the investors of Thiruvananthapuram District. The interactive session was held to enable industrialists and entrepreneurs from different sectors an opportunity to air their concerns and to find solutions conducive to industrial growth with the support of KSIDC.
The interest rate band for KSIDC loans stands revised to 11% – 13% with effect from October 2015 and the specific rates in the band shall be 11%, 11.5%, 12%, 12.5% and 13%, depending upon the credit rating of the borrowers. For all existing and new financial sanctions, a further reduction of a maximum of 1% will be granted at the end of each financial year provided there are no arrears in principal / interest as on March 31 of that particular year. The reduction of 1%, in all existing and new cases, shall be calculated on the outstanding principal balance and there should be no reversal of penal interest portion.
Dr. M Beena IAS, MD, KSIDC said, “While reducing the interest rate at 1%, it shall always be ensured that a minimum rate of interest at 10% shall be maintained in all existing and new cases of financial sanctions.”
The Board also decided to entertain proposals for working capital term loan from Companies with good performance track record. For the purposes of determining the performance track record, KSIDC would consider the following parameters:
a) The company has made cash profits during the preceding 5 years,
b) The company has made net profits during the preceding 3 years,
c) There are no over dues to financial institutions/banks, and
d) There has been turnover growth during the previous three years.
P H Kurian, Principal Secretary, Dept. of Industries & IT; B Jyotikumar, ED, KSIDC; and B Unnikrishnan, Deputy GM were also present on the occasion.
Kerala Biz News