Scheme for Margin Money Grant to Nano Units

The Directorate of Industries and Commerce, Government of Kerala, administers the Scheme for Margin Money Grant to Nano Units. It offers loan-linked financial support to new Nano units engaged in manufacturing, job work, or service activities that involve value addition. The grant is non-repayable and is intended to lower the initial capital burden for entrepreneurs, encouraging the formation and expansion of small-scale enterprises in the state.

Eligible new Nano proprietary enterprises can receive support for project costs up to ₹10 lakhs. Covered expenses include land development, building construction, plant and machinery, electrification, and preliminary or pre-operative costs. By offsetting part of the initial outlay, the scheme seeks to reduce risk for first-time founders and entrepreneurs with limited capital access.

Additional grant amounts are available for women, youth aged 18-40, differently-abled persons, ex-servicemen, and individuals from SC/ST categories. This provision is designed to address entry barriers for underrepresented groups and support a more inclusive entrepreneurial base. The scheme aims to build a network of self-reliant Nano enterprises, contributing to local employment and economic activity in Kerala.

The Margin Money Grant for Nano Units can be applied for through either online or offline channels.

- **Online submission**: - Go to the schemes portal on the official website of the Directorate of Industries & Commerce, Government of Kerala. - Locate the "One Family One Enterprise" scheme (which is commonly linked to Nano unit applications) and select "Apply Now." - First-time users must finish the registration process by supplying the required personal and business information, after which they can log in. - Those who have already registered can log in directly to reach the application form. - Complete the full online application form, making sure every mandatory field is filled in correctly. - Once finished, submit the form online. - **Offline submission**: - Obtain the official application form by downloading it from the Directorate's website. - Fill in the form by hand and attach all supporting documents. - It is essential to include the sanction letter and recommendation from your bank or financial institution, as well as a copy of your passbook showing that the beneficiary's contribution has been paid. - Hand in the full application package to the Assistant District Industries Officer at the relevant Taluk Industries Office.

Before submitting, applicants should verify that all paperwork is complete and that they satisfy every eligibility requirement.

The assessment process operates through a two-tier authority structure. Initially, the Assistant District Industries Officer at the respective Taluk Industries Office serves as the recommending authority, forwarding the Transaction Funding Request (TFR) to financial institutions, banks, Kerala Financial Corporation (KFC), or co-operative banks. Once the financial institution issues a sanction letter with its recommendation, and the officer verifies that the entrepreneur has paid the required beneficiary contribution (confirmed through passbook checks), the application is accepted.

Following this, the application, along with the recommendation, is submitted to the General Managers of the concerned District Industries Centres, who act as the sanctioning authority for the assistance. This layered review ensures that both the financial viability of the proposal and the entrepreneur's adherence to eligibility conditions are examined before final approval and disbursement.