Mr.

Chandappa, Skill Development, KSFC

Learning’s:

As today we met Mr. Chandappa, Skill development department, Karnataka State

Finance Corporation, which is a financial super market for Financial needs of MSME’s and
service sector, I got many insights and very much knowledge regarding the whole KSFC and
its policies, plans, loan spending activities etc. Lets know about my learning’s in brief.

Objectives:
 To effectively identify and assist the entrepreneurs in establishing successful business
enterprises.
 To provide quality financial and related services on a continuous basis.
 To continually upgrade its Products and Services.
 To motivate and involve employees to achieve the set organisational goals.
 To encourage its employees to upgrade and enhance the knowledge and skills through
effective Training and Development.
 To transform the organisation into a Customer Centric Institution.

KSFC covers the entire state of Karnataka by having 32 branch offices in the district
head-quarters divided amongst 4 Circles.

Products:

 Term Loan
 W C Term Loan
 Corporate loan
 Privilege Entrepreneurs Loan
 Additional Loans

Services:

 E- Stamping Activity
 Infrastructure Development
 IPO Monitoring
 Marketing of Insurance Products
 Loan Syndication & escort service

New Initiatives:

 Fine tuning of lending norms to facilitate good customers for additional loans
 Escorts services to the new entrepreneurs for getting Government clearances
  Special interest rebates for Green Tech projects and good customers.
 Special schemes for :SC /ST Entrepreneurs ,Women Entrepreneurs and First
Generation Entrepreneurs

The KSFC is offering financial assistance to the needy with concessional rates. And
those are,

 0.5% rebate for prompt payment

 For Existing good customers 0.5% additional rebate for loans above Rs. Rs.3.00 cr
 Interest rebate of 0.5% for loans up to Rs.1.00 cr and 1% for loans above Rs.1.00 cr
 1% special rebate to Physically Challenged Entrepreneurs,
 1% special rebate to Green-Technology projects,
 Maximum rebate/concession extended to any unit under
 different categories shall not exceed 3%.

I got to know that their will be some special activities only against which the fianancial
assistance is expanded. And they are

 Agro & Food Based Industries

 Textile and Textile Related Activities
 Engineering, Mechanical and Allied Industries
 Construction Related Products
 Health Service Sector
 Tourism Related Services
 Commercial and Real Estate Activities
 Energy Generation projects

Limit of Accommodation:
 Category Minim Normal Can be
um Maximum extended
Loan Loan
Rs.400 lakhs up to
Proprietary / Rs. 5.00 Rs.800
Partnership lakhs* lakhs
Corporate
/ Trust
Bodies
( pvt. /public Rs.5.0 Rs.1000.0 Rs.2000.0
ltd.) 0 lakhs 0 0
& registered lakhs lakhs
Co-operative
societies
* Minimum loan of
Rs.2.00 lakhs for Medical
& Veterinary doctors

The main Schemes of KSFC are

 General loan schmes:

Where loan is given for all MSMEs- new / existing units opting for expansion,
modernisation & diversification. Here the loan is provided on the interest rate of 14% 30 to
50% collateral depending upon the nature of activity.

 Single window schemes:

Where the loan is provided to provide timely and adequate term loan & working capital
term loans to new MSMEs under one roof towards Fixed assets & current assets – Land,
building and Plant & machinery and working capital.

The various new schemes announced by the KSFC are,

 Interest Subsidy Scheme For Sc/St Entrepreneurs

 Interest Subsidy Scheme For Women Entrepreneurs
 Interest Subsidy Scheme For Micro And Small A Entrepreneurs
 Interest Subsidy For Ware House And Cold Storage
For all the above schemes, the KSFC is charging 14% rate of interest on which 10% subsidy is given
by Government of Karnataka, so the net 4% has to be borne by the borrower.

There are also various other schemes which KSFC is offering. And they are

 Assistance to Hotels / Restaurants & tourism related activities

 Assistance to Medical Practitioners / Health care services, Nursing homes /

Hospitals, acquiring electro medical equipment

 Assistance to Construction Activity viz: Commercial complexes, apartments /

villas, formation of residential layout, shopping malls, convention halls, flyovers,
roads etc.

 Assistance to Entertainment Industry. Scheme for Small Road Transport

Operators

 Scheme for Financing Wineries.

 Assistance to Wind Mill Power Projects.

 Rental discounting Scheme

 Scheme for Financing Micro Finance activity

 Privileged Entrepreneurs’ Scheme

 Corporate loan to MEMEs, service sector and CREs sector.

 A.M.A.R.A scheme to create marketinfrastructure in the domestic &

international markets.

 Scheme for Existing Assets & Enterprises.

 Assistance to Construction / buying of ready built show rooms & sales outlets

 Scheme for Rehabilitation of sick industrial units

 Scheme for Financing industrial estates

 Scheme for construction and purchase of Commercial complexes

 Scheme for purchase of mobile generators

Thank You