Grant of Margin Money for Availing Capital Loan (Development of Coir Scheme)

## Grant of Margin Money for Availing Capital Loan

The Department of Industries and Commerce, Union Territory of Puducherry, operates this component under the 'Development of Coir' Scheme. It extends financial incentives to entrepreneurs who set up new coir industries or revive existing ones, with the objective of expanding entrepreneurship in the coir sector.

Only coir units located within the geographical limits of the Union Territory of Puducherry are eligible. The scheme is intended to support local economic growth and generate employment.

Margin money is offered to reduce the initial financial burden on entrepreneurs, making it easier for them to obtain capital loans from recognised financial institutions. The assistance reaches the entrepreneur once the project loan is sanctioned.

- **Step 1:** Begin by downloading and printing the prescribed application form from the official Department of Industries and Commerce website. - **Step 2:** Complete every mandatory field on the form with accurate and full details. Paste a passport-sized photograph in the designated space and sign across it if the guidelines require. Self-attested copies of all supporting documents listed in the application guidelines must be enclosed. - **Step 3:** The completed, signed form together with all enclosures is to be handed over in person. Visit the District Industries Centre (Thattanchavady, Puducherry - 605 009) on a working day during office hours and submit the application to the concerned authority. - **Step 4:** Once the application is received, the District Industries Centre will record the details in its application receipt register and allot a unique number to the applicant. This number serves as identification for all future correspondence and acts as official proof that the application has been submitted.

The margin money grant is awarded through a process that runs alongside the lending institution's own financial appraisal. An applicant must first prepare a detailed project proposal for the coir unit and obtain a capital loan sanction order from a recognised bank or financial entity. The Department of Industries and Commerce then assesses the application, looking at whether the project is genuine, whether it furthers coir industry development, and whether the financial institution's sanction is valid.

Margin money applications are taken up only after a bank has approved the project, so the grant reaches projects that are both commercially viable and bank-approved. Release of the margin money depends on this prior financial sanction, reflecting a multi-layered verification process intended to support sustainable coir enterprises.