thiruvananthapuram finance minister t m thomas isaac has announced a flurry of schemes under kerala state finance corporation kfc which he said would help promising startup companies to realise their dreams however opposition and experts are singing a different tuneisaac said the schemes emerged firm clear through interactions with startup companies during a webinar organied by kfc on wednesdayaccording to his social media post in this regard kfc and government would together come out with schemes that would help entrepreneurs have access to faster and easier and above all hassle free access to creditare you a startup company do you have work orders from government quasi government corporate companies or other wellknown companies then you are eligible for loan worth 90 of the work order value with a ceiling of rs10 crore and an interest rate of 10 you only need to contact kfc only condition that you would have to pay back the loan through escrow account no other security is required thus starts the finance ministers social media postaccording to isaac an expert committee under the chairmanship of it secretary would be set up in a fortnight once that committee approves that project there wont be any delay in kfc he said however experts politicians and entrepreneurs beg to differ with what isaacs claimsyou should note the interest rate its 10 its not an inviting one if the government is really interested in helping companies and entrepreneurs they should say for example lend out at 6 or 7 interest even commercial banks offer better rates than what kfc has offered said seasoned technocrat and state planning board former member g vijayaraghavanisaac said a consent of the government level committee would help startups source up to rs1 core from kfc for establishing the production line for an enterprising prototype with a startup company government would create a special corpus fund worth rs20 crore as guarantee for this scheme if its an it company that has under gone the assessment of a sebi accredited venture capital fund you will get up to rs 5 crore as loan kfc aims to provide finance assistance to at least 1000 organisations through these schemes the minister saidthis is nothing short of bill discounting offered to civil contractors even if the schemes sound like the one being offered without guarantee it proves otherwise on a closer lookentrepreneurs are offered loan at a high interest rate on the basis of solid guarantees that comes in the form of work order and other guarantees there is nothing to cheer for startups in these schemes said congress legislator v d satheesan red tapism is at its worst in kfc and it needs to shun its condescension and talk business if it really wants to reinvent itself said while recalling his ordeal when he approached kfc with a proposal a few years back