Kerala Fin Corp loan assets cross record Rs 5,000 cr

Kerala Financial Corporation loan assets cross record Rs 5,000 cr

The loan assets stood at Rs 5,022 crore, with a whopping 176% increase from the previous year

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State-run Kerala Financial Corporation (KFC) has surpassed the historic milestone of Rs 5000 crores in loan assets.

As on December 31, the loan assets stood at Rs 5022 crore, with a whopping 176 per cent increase from the previous year figure of Rs 2838 crore.

"KFC has achieved the highest growth among the Government-owned State Financial Corporations (SFCs) in India. This important achievement was facilitated by fresh loan sanctions of Rs 3385 crore so far in the current financial year," said Tomin J Thachankari, CMD of KFC.

Total loan disbursal of Rs 798 crore during the previous year has elevated to Rs 2935 crore during the current year. The CMD added that the performance is more glorious since it was achieved at the point when other banks and financial institutions were reluctant to sanction loans due to the pandemic.

Read | LIC Housing Finance disburses Rs 1,331 cr of loans via mobile app

The loan repayments also show an upward trend, surging to Rs 1871 crore from last year's figures of Rs 968 crore. This was prompted by the transfer of the defaulter's information to CIBIL and tightening of recovery measures.

As a result, the non-performing assets dipped to 3.4 per cent, the official detailed. During the year, KFC has provided loans to 1,700 people without any security under the newly introduced Chief Minister's Entrepreneurship Development Programme. The Corporation has also introduced loan schemes for converting buses to CNG and also for purchasing electric vehicles without any security. Furthermore, a special scheme has been introduced for government contractors to discount their bills without any collateral.

KFC has also come up with a scheme to revive the tourism sector, whereby special loans of up to Rs 50 lakh are allowed to hotels without any security, under a daily repayment basis. "The scheme has received positive responses instantly," Thachankary added.

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