To boost entrepreneurship in the silk weaving sector, the Department of Industries and Commerce, Union Territory of Puducherry, has introduced a vital financial support initiative under the Development of Silk Scheme. One of its key components is the “Grant of Margin Money for Availing the Capital Loan”, aimed at easing the initial financial burden of setting up Silk Weaving Units in the region.
Highlights of Puducherry Silk Weaving Loan Support
• Name of Scheme: Grant of Margin Money for Availing the Capital Loan
• Implemented By: Department of Industries and Commerce, Puducherry
• Objective: To support new entrepreneurs in establishing silk weaving units
• Subsidy Type: Margin money assistance on term/working capital loans
• Mode of Application: Offline submission via District Industries Centre
• Location Applicable: Puducherry only
Key Benefits
• Financial assistance of 25% of the loan amount, subject to a maximum of ₹50,000/-
• Margin money is directly released to the bank on behalf of the entrepreneur
• Helps reduce the upfront capital requirement for new silk weaving units
Eligibility Criteria
• Applicant must be a native of Puducherry by birth or have resided continuously for at least 5 years
• Must have sanctioned loan approval from a recognized financial institution
• The silk weaving unit must be set up within Puducherry
• Commercial production must begin within 6 months of the date of grant release
• Family income from all sources must not exceed ₹1,00,000 per annum
• Must provide an undertaking to operate the unit successfully for at least 5 years
Application Process
Mode: Offline
Steps to Apply:
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Download and print the prescribed application form from the official portal.
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Fill in the form with accurate details, paste a recent photograph, and self-attest required documents.
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Visit the District Industries Centre at Thattanchavady, Puducherry – 605009, during office hours.
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Submit the completed application along with documents to the authorized official.
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Upon submission, a unique application number will be assigned for tracking and future reference.
Necessary Documents
• Proof of birth or residential certificate
• Sanction letter of loan from a recognized financial institution
• Income certificate (latest)
• ₹10 stamped undertaking to operate the unit for 5 years
• Any additional documents as requested by the District Industries Centre
Frequently Asked Questions (FAQs)
Q: Where can I find the official guidelines for this scheme?
You can find detailed guidelines on the Department of Industries and Commerce, Puducherry’s official website, or the Citizens’ Charter section.
Q: Who receives the margin money benefit?
The sanctioned amount is released directly to the concerned bank on behalf of the applicant.
Q: Can I apply if my unit is outside Puducherry?
No, the scheme is applicable only if the unit is established within Puducherry.
Q: What is the income limit for eligibility?
The annual income of the applicant and their family combined should not exceed ₹1,00,000.
Q: When must the unit begin production after receiving the grant?
Commercial operations must commence within 6 months from the date of fund release.
Q: What is the maximum margin money support available?
The subsidy is capped at ₹50,000 per eligible applicant.
Q: What should the undertaking letter contain?
It should confirm that the applicant will operate the unit continuously for a minimum of 5 years.
Q: Where can I raise grievances or seek clarification?
You can visit the District Industries Centre or use the “Grievance Redressal” option available on the official portal.
References & Useful Links
- Official Guidelines – Department of Industries and Commerce, Puducherry
- Citizen’s Charter – Puducherry Government
- Download Application Form (PDF)
- Contact Details – District Industries Centre, Puducherry
