Scheme for Margin Money Grant to Nano Units - Kerala
The Scheme for Margin Money Grant to Nano Units is a financial assistance scheme implemented by the Directorate of Industries and Commerce, Government of Kerala. The scheme was launched to support nano enterprises by providing margin money assistance for bank loans, thereby reducing the initial financial burden on entrepreneurs. The scheme is ongoing and aims to promote self-employment, encourage first-time entrepreneurs, and strengthen the nano manufacturing and service sector in Kerala by improving access to institutional finance.
Key Features
- Margin Money Support: The scheme provides a margin money grant that supplements the entrepreneur’s contribution while availing a bank loan, making loan approval easier.
- Focus on Nano Enterprises: Only nano units with very small investment levels are covered, ensuring targeted support to grassroots entrepreneurs.
- Inclusive Coverage: Special categories such as women, SC/ST, youth, and differently-abled entrepreneurs receive higher assistance to promote inclusive growth.
- Institution-linked Implementation: The scheme operates through banks and District Industries Centres, ensuring proper appraisal and monitoring.
Financial Assistance
Eligibility Criteria
Who can apply:
- Nano enterprises with project cost up to ₹10 lakh
- Units availing bank loan from recognised financial institutions
- Manufacturing or service enterprises
- Units registered under Udyam
- Entrepreneurs residing in Kerala
Who cannot apply:
- Medium or large enterprises
- Trading-only activities
- Units that have already availed full margin money assistance under similar schemes
Documents Required
- Identity proof (Aadhaar)
- Address proof
- Udyam Registration certificate
- Bank loan sanction letter
- Project report / cost details
- Bank account details
- Caste certificate (if applicable)
- Any additional documents required by DIC
Application process for the scheme
Option 1: Apply with Bullit (Recommended)
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Option 2: Apply through District Industries Centre (DIC)
- Prepare a simple project report and approach a bank for loan sanction.
- After loan approval, submit the Margin Money Grant application to the District Industries Centre (DIC).
- DIC conducts scrutiny and field verification.
- On approval, margin money is released to the lending bank.
Option 3: Assisted Filing via Taluk Industries Office
Entrepreneurs may approach Taluk Industries Offices / DIC help desks for guidance and assisted submission.
Power combo with the scheme
Related Schemes
Frequently asked questions
What is the objective of the Margin Money Grant to Nano Units scheme?
The scheme aims to help nano entrepreneurs overcome the challenge of arranging margin money for bank loans. By providing government-backed margin support, it enables low-income and first-time entrepreneurs to establish small business units and generate self-employment.
What is considered a nano enterprise under this scheme?
Nano enterprises are very small business units with minimal investment, typically below micro enterprise thresholds, as defined by the Kerala Industries Department from time to time.
Is the margin money grant repayable?
No. The margin money assistance is a grant, not a loan. However, it is linked to the bank loan and subject to conditions such as unit continuity and proper utilisation.
Can women entrepreneurs apply under this scheme?
Yes. Women entrepreneurs are encouraged to apply, and may receive preference as per departmental guidelines.
Is prior bank approval mandatory?
Yes. The margin money grant is released only after the bank sanctions the loan for the nano unit.