Scheme Sponsor: Directorate of Industries and Commerce
Target Group: All new micro, small and medium enterprises in manufacturing, service and
trading activities, who have availed Term Loan and/or Working Capital Loan.
Mode of Assistance: Funding
About the Scheme:
For their operations, MSME’s mainly rely on bank financing. Aiding in the first phases of the
enterprise’s establishment will improve the MSME unit’s capability. The program aims to
give interest subvention on term loans and/or working capital loans that MSME units obtain
from financial institutions, including Kerala Bank, KSIDC, KFC, KSFE, Nationalized Banks,
and Scheduled Banks. The aid is available to manufacturing, service, and trading businesses.
Under the program, women entrepreneurs will make up 50% of the recipients. In addition to
offering interest subsidies for loans up to Rupees 10 lakh (for fixed capital loans and/or
working capital loans) of the project cost, the initiative aims to promote entrepreneurship in
every family.
Assistance Pattern:
- The assistance provided under this scheme shall be in the form of an interest subvention on a reimbursement basis.
- All new MSMEs engaged in manufacturing, service, and trading activities shall be eligible for interest subvention on the interest charged by the financial institution on an approved project for loan amounts up to ₹10 lakhs (for Term loan and/or working capital loan) for a period of five years from the date of disbursement of the 1st installment of the loan by the financial institution.
- In a case where the loan amount exceeds ₹10 Lakhs, the interest subvention shall be considered for loans up to ₹10 Lakhs only.
- The rate of subvention will be up to a maximum of 6%. The subvention will be the difference in the rate of interest charged by the financial institution and 4 %.
Requirements for Application:
- The applicant shall provide all required details and declare such information as to be true if so required by the recommending authority/sanctioning authority to assess the eligibility of the application.
- The applicant shall provide clarifications of further details sought by the recommending/ sanctioning authority.
- The applicant shall allow inspection or verification of any details mentioned in the application including plant and machinery and all other assets if so required by recommending/ sanctioning authority.
- Applicants shall produce loan remittance particulars and a bank certificate for the remittance of the loan.
- The applicant shall execute the requisite legal agreement as and when the assistance is sanctioned.
- The beneficiary shall produce the relevant documents submitted along with the application before the Recommending Authority.
- The applicant should operate the unit as stipulated in the agreement in which the quantum of support received, failing which the assistance shall be resumed by restoring the provisions of Kerala Revenue Recovery Act, 1968 or in such other manner as the Government may deem fit.
More Information: https://industry.kerala.gov.in/index.php/schemes-mainmenu/one-family-
one-enterprises-ofoe
Apply on: https://ofoe.industry.kerala.gov.in/index.php/public