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The state government had issued an order in this connection on last March 10. Chief Minister
Siddaramaiah, who also holds finance portfolio, had announced in the 2014-15 budget an interest subsidy of 6 per cent for KSFC loans for micro and SSIs.
While thanking the chief minister for fulfilling the budget commitment, Mysore Industries Association (MIA) President P Vishwanath and General Secretary Suresh Kumar Jain said during the meetings on pre-budget proposals and on other occasions, MIA was pursuing with the government the possibility of providing a loan to the SSIs at a rate of 6 per cent as given to SC/ST entrepreneurs at 4 per cent.
With the 6 per cent interest subsidy offer, entrepreneurs can get loans from KSFC at 8 per cent now. This will encourage first generation entrepreneurs to venture into industrial projects, they said.
SSI investment limit is Rs 5 crore as per MSMED Act. But Karnataka Government limited this interest subsidy facility for projects upto Rs 1 crore and in place of interest rate of 6 per cent it has announced interest subsidy of 6 per cent, consequent of which SSIs now have to pay 8 per cent interest.
However, regretably this had been limited to first-generation entrepreneurs only, the MIA said.
It has asked SSI Minister Sathish Jarkhiholi to direct the government to enhance the limit of
investment to ~5 crore and fix 6 per cent interest rate as committed in the budget for all micro and SSIs.
First generation entrepreneurs can avail a maximum loan of Rs 70 lakh at 8 per cent, availing of 6 per cent interest subsidy through the KSFC along with applicable state government investment subsidy. For more information, entrepreneurs can contact the KSFC or the MIA, they added.
