KSIDC - Corporate Loan
The KSIDC Corporate Loan Scheme is a long-term financial assistance scheme implemented by the Kerala State Industrial Development Corporation (KSIDC) under the Government of Kerala. The scheme is intended to provide financial support to established corporate groups for asset acquisition, land expansion, modernisation, and diversification activities. It is applicable to corporates with strong financial performance and proven management capability. The scheme is ongoing and applicable across Kerala.
Key Features
- Financial assistance for established corporate groups: The scheme provides financial assistance only to established corporate groups for asset acquisition, land expansion, modernisation, and diversification of business activities.
- Eligibility based on reputation and management strength: The applicant company must be a reputed player in its sector and should be led by a professional and proven management with good reputation.
- Applicable to existing and new clients with good track record: Both existing KSIDC clients and new applicants are eligible, provided they have a good performance and business track record.
- Sanction based on balance sheet strength and business prospects: Loan sanction is based purely on the strength of the company’s balance sheet, profitability, and the volume and future prospects of the existing business.
- Defined loan amount range: The scheme specifies a clear minimum and maximum loan size within which financial assistance can be sanctioned.
- Fixed repayment period linked to cash flow: The repayment period is fixed within a defined range and is determined based on the cash flow generation capacity of the business.
- Moratorium period allowed: A moratorium period is permitted before the start of repayment to allow the company time to stabilise post-investment.
- Floating interest rate with rebate for prompt repayment: The loan carries a floating interest rate based on KSIDC’s internal credit rating mechanism, with an additional rebate for prompt repayment.
- Strong asset-backed security requirement: The loan must be secured by first charge on existing fixed assets, assets to be acquired, and collateral to cover a minimum specified security coverage.
Financial Assistance
Eligibility Criteria
Who can apply:
- Established corporate groups
- Companies with strong balance sheet and profitability
- Corporates led by professional and reputed management
- Existing or new KSIDC clients with good track record
Who cannot apply:
- Startups or newly formed entities without track record
- Businesses with weak financials or poor repayment history
- Proposals failing KSIDC appraisal norms
Documents Required
- Corporate constitution and incorporation documents
- Audited financial statements
- Board resolution for borrowing
- Details of assets to be acquired or financed
- Cash flow projections and business outlook
- Collateral and security documents
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: Large enterprises seeking structured financing.
Option 2: Apply Directly through KSIDC
- Submit detailed proposal and financial statements to KSIDC
- KSIDC evaluates balance sheet strength, profitability, and prospects
- Internal credit rating and sanction decision
- Execution of loan and security documents
- Disbursement as per sanctioned terms
Power combo with the scheme
Related Schemes
Frequently asked questions
What is the objective of the KSIDC Corporate Loan scheme?
The scheme provides long-term financial assistance to established corporate groups for asset acquisition, expansion, modernization, and diversification, based on balance sheet strength, profitability, and future business prospects.
Who can apply for a corporate loan from KSIDC?
Reputed corporate groups with professional management and strong performance track records can apply. Both existing and new KSIDC clients are eligible, subject to internal credit appraisal and financial viability assessment.
How much financial assistance is available under this scheme?
KSIDC provides corporate loans ranging from ₹200 lakh to ₹4,000 lakh, depending on project size, financial strength, and internal credit rating of the applicant.
What are the repayment and moratorium terms?
The repayment period ranges from 5 to 8 years, with a moratorium of 6 to 12 months, fixed based on the cash flow and sanction conditions of the project.
What interest rate is applicable to the corporate loan?
The loan carries a floating interest rate between 8.50% and 10.50%, based on KSIDC’s internal credit rating mechanism. A 0.5% rebate is available for prompt repayment.
What security is required for availing the corporate loan?
The loan is secured by a first charge on existing fixed assets, assets to be acquired, and additional collateral, ensuring coverage of at least 150% of the loan amount.