For Micro, Small and Medium Enterprises (MSME) Loan Schemes of Kerala Bank


The loan scheme is to provide need based credit facilities to the Non-resident Keralites (Pravasis) identified by NORKA ROOTS for setting up Micro and small scale industries. Loans can also be provided for improving any existing business.
Quantum of Finance
  • Maximum of Rs. 5 lakh only.
  • Term Loan - 80% of the project cost or Rs. 5 lakh (whichever is less)
  • Working Capital – A maximum of 20% of the expected annual turnover or Rs. 5 lakh (whichever is less).
Subsidy (Capital and Interest) Capital subsidy:
  • NORKA shall deposit 25% of the loan component subject to a maximum of Rs.1 lakh with the Bank as back end subsidy.
  • The subsidy shall be kept as interest free deposit for a minimum period of 3 years.
  • Bank will charge interest in the loan account only for the liability over and above the subsidy amount received.
  • The subsidy will be released /appropriated to the borrowers loan account , provided the borrowers business remained in operation for a period of three years from the date of sanctioning the subsidy.
  • Under any circumstance the loan should not be closed prematurely before completing a minimum period of 3 years for availing the subsidy.
  • However, the subsidy amount can be adjusted in the loan amount as and when outstanding liability equals the subsidy amount after a minimum period of 3 years.
Interest subsidy: NORKA ROOTS shall provide interest subsidy of 3% (quarterly) for the first 4 years on prompt repayment of loans.
Repayment period
  • Term Loan: Maximum 60 months
  • Working Capital: On Demand (Subject to renewal of the limit every year)
Age Minimum age of 18 years and under any circumstances the repayment period should not exceed the day on which the applicant attains age of 60 years
Nature of Facility Term Loan/Working capital or composite

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