1. Your partner in progress

2.  Kaushik Mukherjee, IAS, Managing
Director
 KSFC has been playing a vital role in the
development of Micro, Small and Medium
scale Enterprises (MSMEs) in the State of
Karnataka
 KSFC an ISO 9001:2000 certified

3.  KSFC is one of the fast track term lending
financial institutions in the country
 Assistance to over 1,63,643 units amounting
to nearly Rs 10,465 crore over the last 52
years in the State of Karnataka.
 KSFC is one of the robust and professionally
managed State Financial Corporations.

4.  KSFC to have assisted many industries that
are internationally recognised like
 INFOSYS
 BIOCON

5. Services
 Financial services
 Infrastructure development
 Term loan

6. Term loan
 KSFC has 23 schemes under term loan

7. LENDING POLICY –
NORMS AND PARAMETERS
Lending Policy Of The Corporation:
 The Corporation formulate lending policy at
the beginning of each financial year.
 lending policy covers various aspects like
the group exposure, thrust sectors, sectors
in the negative list, promoters contribution,
security margin, collateral security norms
etc

8. Policy On Minimum
Loan Size
 Minimum loan size of Rs.5.00 lakhs, except
medical and veterinary doctors where
minimum limit is Rs.2.00 lakhs.
 Minimum size of the loan for others is
reduced to Rs.2.00 lakhs in case of existing
units going in for expansion /modernisation.

9. Financial assistance

10.  In respect of existing units operating successfully,
maximum limit can be extended
for category
I. Rs. 800.00 lakh
II. Rs. 2000.00 lakh

11.  In respect of category (II) the financial assistance can
be sanctioned provided the paid up capital and free
reserves do not exceed Rs. 2000.00 lakh.
 If the requirements of the funds for project is
substantial and cannot be extended by the corporation
alone, then the requirements of loan of such projects
can be met in association with other financial
institutions.

12. Promoters' Contribution
 The minimum promoter’s contribution of the
total project cost prescribed in various
schemes varies between 22.5% and33.3%
 Depending on the location of the project,
various schemes of SIDBI operated by the
Corporation, class of entrepreneur etc.

13. Security
 In addition to the primary security i.e.,
assets financed by the Corporation,
collateral security as per the lending policy
of the Corporation is insisted.
 The collateral security requirement depends
upon the type of project, location, sector,
quality of primary assets etc.

14. Repayment Period
 The repayment period of the term loan
varies between 3 to 8 years including
termination period of maximum 2 years
depending on the period of implementation.
 In respect of corporate loan, the maximum
repayment period is 36 months including six
months of termination.

15. Rate of Interest
Category of loans Rate of interest
Loans up to Rs. 25 lakh 10.50%
Loans above Rs. 25 lakh 11.00%
Non SSIs & MSI 11.00%
Corporate Loan 12.00%

16. Area Of Operation
 The Corporate extends financial for an
enterprise in the state of Karnataka with its
network of 30 branches covering all the
districts of the state.

17. Application Forms For Loan
 Loan application forms are issued after the
proposal is cleared in the project Clearance
Committee (PCC) meeting
 For loan proposals upto Rs. 50.00 lakh
Branch offices will issue the application
forms.
 For loan proposals above Rs. 50.00 lakh,
loan application are issued at Head Office.

18. General Scheme
 For establishment of new
 Tiny/SSI/MSI/ Service Units
 Expansion
 Modernization
 Diversification of Existing Units.

19. Repayment period
 Repayment period : Maximum of 8 years
with a termination period upto 2 years
normally.
 In extremely deserving cases, the maximum
period can go upto 10 years.

20. Project Cost
 The project cost shall not exceed Rs. 12.00
crore for SMEs.
 The project cost can go up to Rs. 20.00
crore in respect of service and
infrastructure projects.

21. Eligibility
 Projects which are eligible to be financed as
per Criteria the SFCs' Act

22. Assistance To Construction/
Infrastructure Related
Activities
 For establishing Commercial Complexes,
 Residential Apartments
 Development of Residential Layouts,
 Group Housing
 Industrial Estates
 Parks
 Godowns

23.  Warehouses
 Acquisition of Ready built Offices/New Office
Building
 Sales Outlets/Showrooms and
 Infrastructure projects like Flyovers, Bridges
etc
 Construction
 Development and Maintenance of Roads

24. Eligible
 Individuals, firms, companies and other
eligible constitutions.

25. Promoter’s contribution
 Minimum promoter’s contribution shall be
contribution 25% of project cost.

26. Assistance To Tourism
 Amusement Parks
 Convention Centres
 Hotels and Restaurants
 Travel and Transport
 Tourist Service Agencies
 Mobile Canteen / Catering

27. Eligible
 Sole proprietorships, partnerships, co-
operative societies.
 Private / public limited companies.

28. Credit Linked Capital Subsidy
Scheme (CLCSS)
 The objective of the scheme is to facilitate
technology upgradation of Micro and Small
Enterprises (MSEs) in specified products /
sub-sectors by providing 15% capital
subsidy for induction of proven technologies
approved under the scheme.

29.  The list of products / sub-sectors covered
under the scheme is as per the approval of
the Governing and Technology Approval
Board (GTAB) constituted under this
scheme.

30. Eligible
 Sole proprietary concerns, partnerships, co-
operative societies, private and public
limited companies.

31. Single Window Scheme
 To provide loan both for fixed assets and
working capital to tiny and small scale units
 Project cost -Rs 35 lakhs
 Working capital requirement -Rs. 15 lakhs

32. Assistance For Construction
Of Roads
 For acquiring capital goods
 Equipment including road rollers,
asphalting units
 Concrete mixtures, tippers, excavators,
 Surveying and other supporting
equipment towards development,
maintenance and construction of roads.

33. Eligible
 Any reputed civil contractors /
firms/companies.

34. Repayment /Security/
Contribution
 Repayment period: up to 6½ years
excluding termination period varying
between 6 to 9 months.
 Security: 100% on all loans.
 Promoter contribution : 25% of project cost.

35. General Corporate Loan
Scheme
 Short term loans to the units who require
urgent working capital
 Funds either to meet the gap in the working
capital requirements or funds required for
executing the rush of orders.

36.  This loan is also considered for developing /
expanding new markets and opening LC for
purchase of new equipments till a term loan
is sanctioned and released by the financial
institutions.

37.  The Corporation also extends corporate
loan for meeting the statutory dues to the
Government like payment of Income Tax,
Sales Tax, Excise Duty etc.

38. Eligibility
 Existing units eligible for financial
assistance from KSFC under the SFCs' Act,
1951 are eligible to be covered under the
scheme.

39. Repayment period
 Not exceeding 24 months including
termination period of 6 months (maximum)

40. Privileged Entrepreneurs
Scheme
 To meet short term funds requirements of
the
existing units which are under thrust /
normal
sectors of lending policy of the Corporation.

41. Eligible
 Proprietary concern, partnership firm,
private and public limited companies.

42. TECHNOLOGY
UPGRADATION FOR TEXTILE INDUSTRIES
 To provide encouragement to textile
industrial units (including units in the cotton
ginning and pressing sectors) in taking up
technology
 Upgradation and to modernize their
production facilities

43. Eligible
 Sole proprietary concerns, partnerships, co-
operative societies, private and public
limited companies in textile and cotton
ginning and pressing industries.

44. INTEREST SUBSIDY SCHEME FOR
SCHEDULED CASTE / TRIBE
ENTREPRENEURS
 Interest subsidy in respect of loans availed
by SC/ST entrepreneurs.

45. Security
 A relaxation of 25% in the requirement of minimum
collateral security up to a loan amount of Rs. 25.00
lakhs, be considered in the case of entrepreneurs
belonging to Scheduled Caste/ Tribe.
 For loans more than Rs. 25.00 lakhs, the collateral
security requirement shall be as applicable to
general category.

46. Assistance To Doctors/Nursing
Homes/Hospitals/
Electro Medical Equipments
 For setting up Clinics
 Nursing Homes
 Hospitals,
 For acquiring Electro- Medical Equipment.

47. Assistance To Entertainment
Industry
 For construction and purchase of cinema
halls and multiplexes
 Production of short TV serials and feature
films,
 Software for visual media publicity.

48. Assistance To Qualified
Professionals
 Assistance for qualified professionals
management
 Medical architects
 Engineers
 Veterinary for setting up of business
enterprises
 Private practice and consultancy services in
their line of expertise.

49. A.M.A.R.A (Assistance
For Marketing Related
Activities)
 Assistance to small and medium scale
existing units with good track record to
undertake various activities necessary to
increase their sales in the domestic and
foreign markets and to create physical
marketing infrastructure.

50. Small Road Transport
Operators (SRTOs)
 Assistance to Small Road Transport
Operators to meet expenditure towards cost
of Chassis, Body Building, Initial Taxes,
Insurance etc.

51. Assistance For Acquiring Private
Vehicles
 Assistance to individuals, firms and
companies
 Acquisition of vehicles like cars, vans, omni
buses, tractors etc.

52. Acquisition Of ISO 9000 Series
Certification
• Assistance to existing industrial concerns in
the SSI sector having a good track record,
to meet expenses on consultancy,
documentation, audit certification fees,
equipment
• Calibrating instruments required for
acquisition of ISO certification.

53. Financing Of DG Sets
 Assistance for acquisition of DG
sets/installation and construction of dg set
etc.
 Assistance for acquisition of generators for
purpose of hiring vehicles, trailers, DG sets
and accessories also available.

54. Office Automation
 Assistance to existing units with good track
record to acquire items like PCs, Printer,
Copier, Fax Machine, Telephone etc.

55. Training Institution
 Assistance to existing units with successful
track record for setting up In- House
Training
 Facilities including Construction of Building,
acquisition of Furniture, Equipments etc.

56. Thank you