Kerala Financial Corporation (KFC) has announced fresh concessions/incentives to borrowers as part of a drive to ramp up disbursals during the last leg of the last quarter of the current financial year.

New loan applications received from February 1 to March 31 will be eligible for waiver of 50 per cent of the processing fees, an official spokesman said. Customers with a good track record may claim waiver of an additional 50 per cent.

Even contract loans are eligible for these concessions. The Corporation has set up express processing centres at its zonal offices to approval loans in the shortest possible time.

Government contractors, including individuals/partnerships, can apply for a maximum loan amount of ₹20 crore. These loans have witnessed a spike in recent times since they enjoy a government guarantee, apart from bill discounting facility.

Kerala Financial Corporation charges only two per cent in guarantee commission while banks insist on three per cent, the spokesman said. It also does not demand a fixed deposit but banks are known to demand up to 10 per cent as deposits.

Contract works are entitled to get as much as 80 per cent of their requirement, the spokesman said. Applicable interest rates are linked to a base rate of 9.5 per cent.

Related Topics