KFC - Working Capital Loans
The KFC – Working Capital Loans, officially titled “Working Capital Term Loan including SWS for Units in both Manufacturing & Service Sectors”, is a special loan scheme implemented by Kerala Financial Corporation (KFC). The scheme is currently operational and aims to provide working capital term loan support to new and existing MSMEs in Kerala, covering both manufacturing and service sectors. It is designed to help your business meet short-term operational requirements such as inventory, receivables, and routine expenses, while offering structured repayment and a defined moratorium.
Key Features
- Working Capital Term Loan: The scheme provides term-based working capital finance, allowing MSMEs to manage operational cash flow gaps without relying entirely on short-term bank limits.
- Wide Sector Coverage: Both manufacturing and service sector MSMEs are eligible, ensuring broad applicability across industries, except CRE projects.
- Defined Loan Cap: The scheme clearly specifies an upper loan limit of ₹5 crore, making it suitable for small to mid-sized working capital needs.
- Promoter Contribution Requirement: A minimum promoter contribution of 25% ensures promoter commitment and financial discipline.
- Structured Repayment & Moratorium: MSMEs are allowed a moratorium of up to one year, with total repayment spread across 72 months, easing initial cash flow pressure.
Financial Assistance
Eligibility Criteria
Who can apply:
- New and existing MSMEs in manufacturing or service sectors
- Units operating in Kerala
- Units with prompt banking conduct
- Existing units showing net profit as per latest audited accounts
- Recently started units (3 years existence not mandatory)
Who cannot apply:
- Commercial Real Estate (CRE) projects
- Units failing to meet KFC internal credit rating norms
Documents Required
- Aadhaar & PAN of promoters
- Business constitution documents
- Audited Balance Sheet & P&L Account
- Bank statements
- Details of existing banking arrangements
- Proof of promoter’s contribution (minimum 25%)
- Projected cash flow statement
- Statutory registrations and approvals (as applicable)
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: Businesses needing faster filing and compliance accuracy.
Option 2: Apply Online via KFC Portal
- Visit KFC Apply Online / Track Application portal
- Register and log in as an applicant
- Select Working Capital Loans
- Enter unit details and loan requirement
- Upload financial and statutory documents
- Submit and track application status online
Option 3: Apply through KFC Office
- Visit or contact the nearest KFC office
- Apply under Working Capital Term Loan (Special Loan)
- Submit financials and supporting documents
- Application undergoes appraisal and sanction as per KFC norms
- Loan is disbursed after approval
Related Schemes
Frequently asked questions
What is KFC Working Capital Loan?
It is a Special Loan of Kerala Financial Corporation that provides a working capital term loan, including SWS, to manufacturing and service sector units to meet their operational funding requirements.
What is the maximum loan amount?
The upper loan limit under KFC Working Capital Loans is up to ₹5 crore, subject to appraisal and eligibility.
Is three years of business existence mandatory?
No. Completion of three years of existence is not mandatory for recently started units applying for this loan.
What promoter contribution is required?
A minimum promoter contribution of 25% is required for availing this working capital loan.
What is the repayment structure?
The loan is repayable in 72 monthly instalments, including a moratorium of up to 12 months.