Thiruvananthapuram, Nov 16 (IANS): In a bid to rev up the business scenario, state owned Kerala Financial Corporation (KFC) has launched a new scheme for small and medium sector enterprises offering loans up to Rs 1 crore at 5 per cent interest under the Chief Minister's Entrepreneurship Development Programme.

A KFC official said the scheme is being implemented by revamping the existing Chief Minister's Entrepreneurship Development Programme.

"At present, up to 50 lakh is available under the scheme at 7 per cent interest. The scheme will be changed to provide up to Rs 1 crore at 5 per cent interest. The Government of Kerala will provide 3 per cent subsidy under the scheme and a further 2 per cent subsidy will be provided by KFC. The target is 2,500 enterprises in five years at the rate of 500 enterprises per annum. For this KFC will set aside 300 crore every year," said the official.

The units looking for loans must have MSME registration.

The age of the chief entrepreneur should be below 50 years.

The age limit for SC/ST entrepreneurs, women entrepreneurs and Non-Resident Keralites is up to 55 years.

Loans are available to start new ventures and modernize the existing ventures. The repayment period is up to 10 years.