Scheme for Interest Subvention to Nano Household Enterprises - Kerala

Key Features
Financial Assistance
Eligibility Criteria
Documents Required
Application Process for the scheme

Key Features

Interest Subvention on Loans: Under this scheme, eligible nano household enterprises receive interest subsidy on loans availed from banks. The government reimburses a portion of the interest paid, effectively reducing the cost of borrowing for very small businesses.
Exclusive Focus on Nano & Household Enterprises: The scheme is designed specifically for very small, family-run or home-based enterprises with limited investment capacity. This ensures that benefits reach businesses that are often excluded from larger MSME schemes.
Coverage of Bank Loans: Interest subvention is applicable only on institutional credit availed from scheduled commercial banks, cooperative banks, or other recognised financial institutions, encouraging formal credit usage.
Direct Financial Relief to Entrepreneurs: The interest subsidy is provided after loan disbursement and interest payment, helping enterprises improve cash flow and business sustainability during the early stages.
State Government–Funded Scheme: The scheme is fully funded by the Government of Kerala, reflecting the state’s commitment to grassroots entrepreneurship and inclusive industrial growth.

Financial Assistance

Component	Assistance Provided	Detailed Explanation
Interest Subvention	Interest subsidy on eligible loans	If a nano enterprise takes a bank loan at 9% interest and the scheme provides a 5% subvention, the effective interest burden reduces to 4%.
Loan Coverage	Term loan and/or working capital loan	Both long-term business loans and short-term working capital loans are eligible, subject to scheme limits.

Note - Exact subvention rate and maximum loan ceiling: As per latest Kerala Government order.

Eligibility Criteria

Who can apply:

Nano or household enterprises operating in Kerala
Enterprises engaged in manufacturing, service, or small trading activities
Units with loan accounts from recognised banks
Entrepreneurs belonging to households with small-scale business activity

Who cannot apply:

Medium and large enterprises
Enterprises without bank loans
Units already availing similar interest subsidy from other state schemes

Documents Required

Proof of residence (Kerala)
Aadhaar / ID proof
Bank loan sanction letter
Loan account statements showing interest paid
Local body registration / trade license
Bank passbook or account details

Application Process for the scheme

Option 1: Apply with Bullit (Recommended)

Click here to start instantly with guided support. Our team checks eligibility, helps compile documents, and assists in filing the interest subvention application with the concerned department. You can track progress while focusing on your business, we coordinate end-to-end.

Recommended for: Nano entrepreneurs who want hassle-free assistance and faster processing.

Option 2: Through Local Self-Government / Department Route

Avail a business loan from an eligible bank.
Submit interest subvention application through the prescribed form.
Apply via the local body / implementing agency as notified by the state government.
Interest subsidy is credited after verification and approval.

Power Combo with the scheme