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. This loan-linked initiative offers financial support to new Nano units engaged in manufacturing, job work, or service activities that involve value addition. The grant, which does not require repayment, is intended to lessen the initial capital burden on entrepreneurs and encourage the formation of small-scale enterprises in the state.

Support is available for new Nano proprietary businesses with project costs up to ₹10 lakhs. Eligible expenses include land development, building construction, plant and machinery, electrification, and preliminary or pre-operative costs. By covering a portion of these startup expenses, the scheme seeks to reduce risk for founders who are new to business or have limited access to finance.

Additional grant amounts are provided to specific applicant groups: 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 these groups and support a more inclusive entrepreneurial base. The scheme aims to build a network of self-reliant Nano enterprises that contribute to local employment and economic activity in Kerala.

Applications for the Margin Money Grant to Nano Units may be filed 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 (frequently linked to Nano unit applications) and select "Apply Now." - First-time users must finish the registration process, supplying the requisite personal and business information, before they can log in. - Existing users can sign in directly to reach the application form. - Complete the detailed online application form, verifying that every mandatory field is filled in correctly. - Once finished, submit the form electronically. - **Offline submission**: - Obtain the official application form by downloading it from the Directorate's website. - Fill in the form by hand, and attach all necessary supporting paperwork. - It is essential to include the sanction letter and recommendation issued by your bank or financial institution, as well as a copy of your passbook showing that the beneficiary's contribution has been transferred. - Hand over the full application packet to the Assistant District Industries Officer at the relevant Taluk Industries Office.

Before applying, confirm that all documents are in order and that every eligibility condition is satisfied.

The assessment process follows 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 through the passbook that the entrepreneur has paid the required beneficiary contribution, the application is accepted.

The application, along with the recommendation, is then submitted to the General Manager of the concerned District Industries Centre, who acts as the sanctioning authority for the assistance. This arrangement ensures that both the financial viability of the project and the entrepreneur's adherence to eligibility conditions are examined before final approval and disbursement.