Thiruvananthapuram, Apr 3 (IANS): State-owned Kerala Financial Corporation (KFC) on Friday announced three new loan schemes to help MSME units tide over the economic crisis caused by COVID-19 pandemic.

KFC is a leading term-lending institution for business investors in the state.

Under one scheme, Rs 5 crore will be provided, against work orders, to units engaged in manufacturing products or providing services in fighting COVID-19.

The loan can be used for acquiring equipment, purchasing raw material or for meeting working funds of such units.

Another is a top-up loan to existing customers of KFC to tide over the current situation, without the need to provide additional security.

In one scheme, Rs 50 lakh loan can be availed of by units/entities involved in marketing MSME products or entities supporting MSME sector.

"KFC will mitigate the disruptions caused by the pandemic. The new loan schemes will ensure the continuity of businesses," said Sanjay Kaul, CMD of KFC.

KFC has also granted moratorium on loan repayments to existing customers as part of the relief package.