KSFC Procedures - Interest Rate Structure

The interest rate structure with effect from 2.5.1998 is as under Interest rates are bound to change from time to time.

Sl. No.

Category if borrowers/ purpose of loans

Rate of Interest (%) p.a.

I.

Rates of interest for general categories of borrowers/loans:

1. Term loan (inc. WCTL) to SSIs, non SSIs and road transport operators irrespective of the  purpose of loan:


i) Upto & inclusive of Rs. 25,000/-

 a) General rate

 b) Under RSR

ii) Over Rs.25,000/- upto Rs. 2,00,000/-

 a) General rate

 b) Under RSR

 

 

 

12.25%

11.25%

 

13.75%

12.75%

 

2. Term loan (incl. WCTL) over Rs. 2,00,000/- to:

i) SSIs, non SSIs where project cost is less than Rs.45.00 lakhs and road transport operators  inclusive of modernisation/diversification, expansion & EFS proposals:

 a) General rate

 b) Under RSR

ii) All MSIs and non SSIs where project cost exceeds Rs. 45.00 lakhs.

 a) General rate

 b) Under RSR

 

 

16.50%

15.50%

  

17.50%

16.50%

II.

Term loans under TDMF & ISO 9000 schemes to SSI units:

i)   Upto Rs. 25,000/-

ii)  Over Rs. 25,000/- & upto Rs. 2,00,000/-

iii) Over Rs. 2,00,000/-

 

12.25% *

13.75% *

14.25% *

III.

Rate of interest for other categories of borrowers/loans:

1. Loans sanctioned out of corporation's own funds such as bridge loan against investment subsidy, loan for acquiring second-hand machinery or for acquiring old KSSIDC sheds.

2. Loans under Corporate Loan scheme for:

 a. AAA rated entrepreneurs/units

 b. Others

3. Loans to credit rated entrepreneurs:

a) AAA rated entrepreneurs/units

 i)  SIDBI cases

 ii) IDBI

b) AA rated entrepreneurs/units

 i)  SIDBI cases

 ii) IDBI cases

 

 

19.00%

  

18.50%

19.00%

  

15.50%

16.50%

 

 

16.00%

17.00%

(*) Rate regulated by SIDBI NOTES
  1. 1. The rates are applicable to cases where the first disbursement of term loan is on or after 02.05.1998.
  2. Penal interest of 2.5% is chargeable in case of default to all categories of borrowers.
  3. Concession of 1% in interest rate is available in respect of loans sanctioned to SC/ST entrepreneurs expect fro term loan under TDMF and ISO 9000 schemes.
  4. Concession of 0.5% over and above the applicable rate is available for software industries with project cost less than Rs. 50.00 lakhs.
  5. While applying the interest rate, the total loan outstanding (i.e., existing + proposed) will be the criterion.
  6. The rate of interest for deferred payment liability in case of sale of assets will be the current rate of interest under general category depending upon whether the unit falls under 2(i) or 2(ii) under I above i.e., concessional rate under I (i) or I (ii) shall not be applied in such cases, even if the aggregate loan is less than Rs. 2,00,000/-.