KFC CUB Arrangement
The KFC – CUB Arrangement is a working capital loan scheme implemented by Kerala Financial Corporation (KFC) in association with City Union Bank (CUB). The scheme is currently operational and is part of KFC’s ongoing MSME credit support initiatives. It is designed to help existing and eligible MSMEs in Kerala meet their short-term operational and working capital needs. Under this arrangement, KFC provides financial assistance starting from ₹5 lakh, enabling your business to manage cash flow, purchase raw materials, and meet day-to-day expenses smoothly
Key Features
- Working Capital Loan Facility: This scheme specifically supports your business’s operational requirements such as inventory procurement, payment of wages, utility expenses, and receivables management.
- Minimum Loan Amount of ₹5 Lakh: The scheme starts from ₹5 lakh, ensuring that MSMEs with meaningful working capital needs can access adequate funds.
- Joint Financing with City Union Bank: The arrangement allows coordinated lending where banking support is complemented by KFC’s developmental finance expertise, improving credit accessibility for MSMEs.
- Kerala-Focused MSME Support: Only MSMEs operating within Kerala are covered, aligning with KFC’s mandate to strengthen the state’s industrial and business ecosystem.
- As per KFC Lending Norms: Interest rate, tenure, and security are decided after appraisal, ensuring risk-based and responsible lending.
Financial Assistance
Eligibility Criteria
Who can apply:
- MSMEs registered as per applicable laws
- Units operating within Kerala
- Existing business entities requiring working capital
- Enterprises meeting KFC’s credit appraisal norms
Who cannot apply:
- Bar hotels
- Transport operators
- Crushers
- Pure trading activities
- Commercial real estate projects
- Contractors and cinema/serial production units
Documents Required
- KYC of promoter(s): Aadhaar/PAN
- Business proof: registration, licenses (as applicable)
- Bank statements (6–12 months)
- Financials: ITR, audited statements (if applicable)
- GST returns (if applicable)
- Working capital assessment note (stock/receivables/payables position)
- Existing loan details (if any)
- Authorization documents (partnership/board resolution, etc.)
Application process for the scheme
Option 1: Apply with Bullit (Recommended)
Start instantly with our guided application support, where our team verifies eligibility, prepares documentation, and coordinates with the Industries Department on your behalf. Using our business loans and compliance calendar, you can track progress while focusing on project execution, we manage the application end-to-end.
Recommended for: Lean teams. Designed to save you time and effort. Access expert help from start to finish.
Option 2: Apply Online via KFC Portal
- Go to KFC’s Apply Online / Track Application portal
- Create/login to your account
- Choose the relevant working capital / scheme option
- Fill business and promoter details and upload documents
- Submit and track status online
Option 3: Apply through KFC Branch/Office Support
- Contact KFC through helpline/email or visit the office/branch
- Request working capital assistance under KFC–CUB Arrangement
- Submit application with financials and supporting documents
- Appraisal → sanction → disbursement (as per KFC process
Related Schemes
Frequently asked questions
What is the KFC–CUB Arrangement loan scheme?
It’s KFC’s working capital product where the support is offered as Working Capital (WC) facilities, and KFC has also reported an MoU with City Union Bank (CUB) for virtual working capital arrangements through banking-system integration. Practically, it’s meant to help eligible businesses manage operational cash-flow needs like inventory and receivables without disruptions.
Is KFC–CUB Arrangement a term loan or a working capital loan?
This scheme is clearly positioned as a working capital (WC) facility. That means it is designed for recurring operational needs rather than only long-term asset purchase. If your requirement is capex-heavy (machinery, building, expansion), KFC may route you to a different product category.
What is the minimum loan amount under KFC–CUB Arrangement?
As per KFC’s scheme listing, the minimum loan amount is ₹5 lakh. This is helpful for smaller units as well, because working capital gaps often begin at modest levels (purchase cycles, supplier payments, receivable delays). Final sanction still depends on appraisal and documentation.
Who should consider applying for this scheme?
Businesses that have a running operation and face liquidity pressure due to credit sales, seasonal inventory build-up, delayed receivables, or bulk purchase requirements can consider it. If your bottleneck is “cash stuck in the cycle,” a WC facility is typically more suitable than a long-term loan, subject to KFC’s credit checks.
How do I apply for KFC–CUB Arrangement online?
KFC provides an online route via its Apply Online / Track Application portal. You generally submit enterprise details, promoter KYC, and financial documents, then track application progress digitally. If you prefer assisted filing, you can also apply via the guided Bullit route listed above.
What does “virtual working capital arrangement with CUB” mean here?
KFC’s Annual Report (2021–22) notes that KFC entered an MoU with City Union Bank for virtual working capital arrangements by integrating their core banking systems. In simple terms, it indicates a structured bank-linked mechanism that can make WC operations smoother and more trackable, depending on implementation and borrower journey.