KFC - Financing Construction Activities And Housing Projects
The KFC – Financing Construction Activities and Housing Projects scheme is a term loan facility implemented by Kerala Financial Corporation (KFC) to provide financial assistance to builders and developers engaged in constructing flats, villas, and apartment projects in Kerala. The scheme is currently operational and aims to support organised housing development by funding eligible residential construction projects with defined financial terms. Through this scheme, your housing project can access structured long-term finance for construction, subject to regulatory compliance and project viability.
Key Features
- Type of Loan: This is a general term loan, which means it is designed to meet medium-to-long term funding requirements of housing construction projects. It is suitable for financing capital-intensive activities like construction rather than short-term working capital needs.
- Purpose: The loan is intended to support residential housing construction, including flats, villas, and apartment projects. It provides builders and developers with structured financial support to execute approved housing projects in Kerala.
- Upper Loan Limit: Under this scheme, KFC can extend financial assistance of up to ₹5 crore per project. The actual loan amount sanctioned depends on project cost, financial viability, and appraisal by KFC.
- Minimum Internal Credit Rating: Applicants must achieve a minimum internal credit rating of 50% as per KFC’s assessment framework. This ensures that only projects and promoters with acceptable financial strength and risk profile are considered for funding.
- Promoter’s Contribution: Promoters are required to contribute at least 33.33% of the total project cost from their own sources. This requirement ensures adequate promoter stake in the project and reduces over-dependence on borrowed funds.
- Moratorium Period: A moratorium of up to 36 months is allowed from the date of first disbursement, depending on the construction timeline. During this period, repayment of principal is deferred, helping developers focus on completing construction.
- Repayment Period: The loan is repayable in monthly instalments, with the total repayment period capped at 6 years including the moratorium. This structured repayment schedule aligns loan servicing with project completion and cash flow generation.
Financial Assistance
Eligibility Criteria
Who can apply:
- New and existing builders and developers in housing sector
- Residential projects with minimum 5 units
- Projects located anywhere in Kerala
- Projects registered under RERA
- Promoters who are financially sound and prompt in loan repayments
- Projects with all statutory and local authority approvals
Who cannot apply:
- Projects with fewer than five residential units
- Non-residential or commercial real estate projects
- Projects without RERA registration
- Promoters with poor repayment track record
Documents Required
- Aadhaar & PAN of promoters
- Constitution documents of the firm/company
- Detailed Project Report (DPR)
- Land ownership / development rights documents
- Approved building plans
- RERA registration certificate
- Statutory approvals from local authorities
- Proof of promoter’s contribution (minimum 33.33%)
- Bank statements and details of existing loans
- Financial statements of promoter entities
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: Builders and developers handling approval-heavy housing projects.
Option 2: Apply Online via KFC Portal
- Visit KFC Apply Online / Track Application portal
- Register and log in as an applicant
- Select Financing Construction Activities and Housing Projects
- Enter project, promoter, and financial details
- Upload approvals and supporting documents
- Submit application and track status online
Option 3: Apply through KFC Office
- Approach the nearest KFC office
- Apply under Term Loan – Financing Construction Activities and Housing Projects
- Submit project report and approvals
- Application is appraised based on credit rating, promoter contribution, and viability
- Loan is sanctioned and disbursed as per KFC norms
Related Schemes
Frequently asked questions
Who is eligible to apply for this scheme?
All new and existing builders and developers in the housing sector can apply, subject to project size, approvals, credit rating, and repayment track record.
What is KFC Financing Construction Activities and Housing Projects?
It is a term loan scheme of Kerala Financial Corporation that provides financial assistance to builders and developers for constructing residential housing projects such as flats, villas, and apartments in Kerala.
What is the maximum loan amount under this scheme?
The upper loan limit is up to ₹5 crore, depending on project cost and KFC appraisal.
Is RERA registration mandatory?
Yes. The housing project must be RERA registered to be eligible for financing under this scheme.
What is the promoter contribution required?
A minimum promoter contribution of 33.33% is required.
What is the repayment structure?
The loan includes a moratorium of up to 36 months from first disbursement and must be repaid within 6 years, including the moratorium period.