How KSIDC Supports Your Business ?

How KSIDC Supports Your Business

Kerala State Industrial Development Corporation Limited (KSIDC) has now acquired the knowledge and skills which it needs to provide a wide range of products and services related to project finance to businesses and industries in the State. The KSIDC Team strives to be the best lender for all state-based businesses when they need it most. KSIDC has ensured the presence of qualified and experienced professionals who provide business entities with support and care at all times in order to maximize returns in a mutually beneficial manner. KSIDC now provides support and financial assistance to the state’s small, medium, and large businesses. These include service industries like tourism, star-rated hotels, resorts, hospitals, and infrastructure projects, among others. In general, the financial assistance begins at Rs. 100 Lakhs, with a maximum limit of Rs. 6,000 crores for the project. With an investment outlay of approximately Rs, KSIDC has promoted more than 1000 businesses in the State thus far. 12,000 crores and approximately 1,000 direct jobs were created.


The functions of the KSIDC include providing financial support through term loans and equity; managing industrial growth centers and industrial parks that provide suitable industrial land with allied infrastructure like power, water, and common facilities; facilitating ETP and STP investments; acting as the nodal agency for the government of Kerala’s EoDB initiatives; processing EBRAP and PM Gati Sakthi; rewarding responsible investments for scale-up and growth; encouraging entrepreneurship through seed funds, scale-up assistance, WE Finance, and other similar programs In addition to serving as an interface between the government and industry, KSIDC promotes the state’s industrial ethos and serves as a spokesperson for the state. A core group of skilled professionals from engineering, management, finance, and law make up the KSIDC team.

Kerala has a unique set of geographical features that have made it one of Asia’s most popular tourist destinations. KSIDC has always supported responsible investments in the state that try to balance people, nature, and industry. 


The core financial products of KSIDC is as follows:

Term Loan: 

The term loan is available to Partnership, LLP, Private Limited, and Public Limited Companies to provide hassle-free financing for the applicant’s long-term establishing, expansion, modernization, and plant modification requirements. Additionally, it provides Rs in financial assistance. Rs. 100 Lakhs 6,000 Lakhs with a repayment term ranging from six to ten years, depending on cash flow, a moratorium period of one to two years, interest rates ranging from 8.50 percent to 10.50 percent (floating, based on the internal credit rating mechanism), and an additional 0.5 percent discount for prompt repayment of financial assistance. The security for the loan must be exclusive or pari passu charge over the assets of the unit that is being financed.

Equipment Purchase Loan:

The equipment purchase loan provides a loan of Rs. 10,000 to Partnership, LLP, Private Limited, and Public Limited Companies to meet the plant and machinery, utilities, and equipment purchase to existing and new clients with a good track record. Gives Rs. 200 lakhs 2,000 Lakhs has a fixed repayment term of five to eight years, depending on cash flow. Additionally, there is a six-month moratorium, financial assistance of up to 77.50 percent of the cost of purchasing plant and machinery, utilities, or equipment (i.e., the promoter’s required margin must be at least 22.50 percent), an interest rate of 8.50 percent to 10.50 percent (floating, based on the internal credit rating mechanism), an additional 0.5 percent rebate for prompt repayment of financial assistance, and security for the loan must conform to the current lending standards for both new and existing customers.

Working Capital Term Loan

The capital term loan will help eligible Partnership, LLP, Private Limited, and Public Limited Companies with good track records meet their long-term establishing, expansion, modernization, and plant modification needs. It will also help eligible entities meet their working capital requirements. In addition to that, it provides Rs. Rs. 200 lakhs 2,500 Lakhs with a fixed repayment term of 5 to 8 years, based on cashflow, an interest rate of 8.50 percent to 10.50 percent (floating, based on the internal credit rating mechanism), an additional 0.5 percent rebate for prompt repayment of financial assistance, and gives a security that has first charge over the company’s existing fixed assets exclusively or on a pari passu basis to provide a security margin of 25 percent or 133.33% collateral security, or a combination of the two

Share investment

Share investment will provide financial assistance to public limited companies in the form of share capital contributions, equity investments up to 26 percent in certain instances, and preference investments up to 11 percent in certain instances, with a specified dividend rate serving as the term lending rate.

KSIDC Privilege Card

With the KSIDC Privilege Card, you can get financial help from the best KSIDC-aided facilities that have been in operation for at least three years. It offers a new loan at the lowest interest rate in the band, up to 50% of the balance. However, it must have a good repayment history with KSIDC, the accounts must be in the standard category, and the processing fee will be waived once the most recent audited or provisional balance sheet is submitted.


Bill Discounting Loan

A loan for bill discounting will provide financing for the purchase and discounting of bills arising from legitimate trade transactions between clients and PSUs or the government. It will help a corporation or partnership with at least three years of experience in civil, mechanical, and engineering works and other business (excluding trading) accompanied by a certificate from an authorized agency like PWD or KWA, among others. Together, the work advance and credit or loan cannot exceed 80% of the contract or purchase value with a maximum of Rs. 5 billion at a time Financial Aid in the form of Rs. Rs. 200 lakhs. The loan will be secured by the personal guarantee of the partners or directors with a necessary agreement or POA with KSIDC. A tripartite agreement between the company or firm, the buyer, and KSIDC, with an irrevocable power of attorney in favor of KSIDC is to receive the bill amount directly from the work issuing Department or Government. The interest rate on the loan is floating at 10.50 percent.

Contractor Loan

The contractor worker advance will give financial assistance via working capital term loan to eligible, laid out and trustworthy candidates in the State for execution of different works regarding Government allocated agreements in the State to Organization, LLP, Ownership concern or Association Firm. It will receive a financial assistance of 60% of cost of work awarded and financial assistance of Rs. 50 lakhs 6,000 Lakhs. It will have a three-year repayment period with a floating interest rate of 9.50 percent. Security for the loan will be an irrevocable bank guarantee, fixed deposits in nationalized or scheduled banks, and unencumbered collateral security, providing 133% of the loan’s cover.

WE Funding

Women who are already operating a manufacturing or service business that makes use of industrial machinery or equipment and has an average turnover of Rs. 10 lakh and above, for scaling up through modernization, expansion, and related diversification. It aids sole proprietorships, partnerships, limited liability partnerships, private limited companies, and other types of businesses owned and managed by women. A Loan assistance of up to 80% of project cost shall be provided with a Lending limits Rs. 25 Lakhs and Interest rate of 7.50%. The Tenure of loan shall be limited to a maximum of 5-6 years, including a moratorium up to 6 months from the date of sanction of loan.

Startup Support (Seed Funding & Scaleup Assistance)

Seed Funding

Innovative start-ups and potential start-ups will receive seed funding in the form of loans equal to 90 percent of the initial project cost, with a maximum loan amount of Rs. 25 Lakhs. It will be treated as a soft loan to the company, with a repayment term of three years and an interest rate of 6.50 percent (the bank rate on the date of approval).

Scale Up Funding

Start-ups supported by KSIDC’s seed funds that have successfully completed product development, launched commercial operations, and generated revenue. A Further financial assistance of up to Rs. 50 lakhs for scaling up their business activities, subject to a maximum of 80% of project cost and a Scale up support will be given as a soft loan for a period of 3 years with a Interest rate of 7.00%