The Scheme for Interest Subvention to Nano Household Enterprises, introduced by the Directorate of Industries & Commerce, Government of Kerala, is a game-changing initiative designed to empower small-scale entrepreneurs and promote sustainable economic growth. This scheme aims to provide financial assistance in the form of interest subvention to Nano and household enterprises, enabling them to thrive in competitive markets. By offering relief on term loans for up to three years, the scheme ensures that budding entrepreneurs have the support they need during the critical early stages of their business journey.

Key Objectives of the Scheme

1. Generate Employment Opportunities: Create new self-employment projects (Nano/Household units) to boost income generation within households.
2. Aggregate Household Units: Increase the potential for employment by clustering small units into larger networks.
3. Sustainable Livelihoods: Provide continuous and sustainable employment, enhancing the wage-earning capacity of unorganized/household units.
4. Address Gaps in Existing Schemes: Fill gaps left by similar schemes from the Government of India or the Government of Kerala.

Who Can Benefit?

The scheme supports Nano and household enterprises with a capital investment of ₹10 lakhs or less. Eligible sectors include:

• Manufacturing Units: Engaged in job work or production processes.
• Service Sector Activities: Involving value addition through machinery or equipment.

Indicative List of Service Activities

• Processing, preserving, and packaging of meat, fish, fruits, and vegetables.
• Embroidery work, ornamental trimmings, and metalworking services.
• Repair and maintenance of computers, mobile phones, TVs, vehicles, boats, and other equipment.
• Laundry services, dry cleaning, photocopying, and recycling.

Negative List

Certain activities are excluded, including;

• Photo studios, breweries, distilleries, sawmills, soap-grade sodium silicate units, and asbestos processing units (unless specific conditions are met).
• Power-intensive units requiring over 5,000 KVA of contract load.

Key Benefits of the Scheme

1. Interest Subvention:
   • General enterprises: 6% per annum for three years.
   • Women and SC/ST enterprises: 8% per annum for three years.
2. Reimbursement Basis: Assistance is provided on a reimbursement basis for the term loan availed.
3. Flexibility in Early Stages :
   • Subvention is provided in the first year without considering repayment history.
   • For the second and third years , subvention is contingent upon the loan not being classified as an NPA (Non-Performing Asset) by the bank.
4. Monitoring Support: The scheme includes periodic monitoring to identify and address signs of financial distress early.

Eligibility Criteria

To qualify for the scheme, applicants must meet the following conditions;

1. Fixed Capital Investment: The unit’s fixed capital investment should not exceed ₹10 lakhs.
2. Sector: Engaged in manufacturing, services, or job work.
3. Pollution Norms: Must fall under the white or green category as per pollution control norms.
4. Connected Load: The connected load should not exceed 5 HP.

Exclusions

1. Manufacturing units eligible under the Entrepreneur Support Scheme or other state/central government schemes are not eligible.
2. Units availing special low-interest rates from government agencies cannot claim additional subvention under this scheme.

Obligations of Applicants

Applicants must fulfill the following obligations;

1. Provide accurate details and declare all information to be true.
2. Furnish clarifications or additional details if requested by the sanctioning authority.
3. Allow inspections or verifications of assets, documents, and other details mentioned in the application.
4. Submit original documents for verification if required.

How to Apply – Online/ Offline Process

1st) Online Application

1. Visit the Official Website: Go to the Directorate of Industries & Commerce, Kerala.
2. Select the Scheme: Choose “Scheme for Interest Subvention to Nano Household Enterprises” from the available services and click “Apply Now.”
3. Login/Register:
   • New users must register by providing their details.
   • Existing users can log in directly.
4. Fill the Application Form: Complete the form, upload required documents, and submit.

2nd) Offline Application

1. Visit the nearest office of the Directorate of Industries & Commerce.
2. Collect the application form, fill it out, and submit it along with the required documents.

Essential Documents

Ensure you have the following documents ready;

1. Copy of identity proof of the applicant.
2. Bank statement file from the bank.
3. Amount statement file from the bank.
4. Declaration of Promoter with signature.
5. Annexure-II: Recommendation of the financial institution.
6. Any other document as demanded by the recommending/sanctioning authority.

Frequently Asked Questions (FAQs)

Q.1 What is the aim of the scheme?

The scheme aims to promote Nano and household enterprises by providing financial assistance in the form of interest subvention on term loans.

Q.2 Which types of enterprises are eligible?

Enterprises engaged in manufacturing, services, or job work with a fixed capital investment of ₹10 lakhs or less are eligible.

Q.3 What is the benefit of the scheme?

Beneficiaries receive an interest subvention of 6% per annum (or 8% for women and SC/ST enterprises ) for three years on a reimbursement basis.

Q.4 Will subvention be passed in case of loan default?

No, subvention will not be passed if the loan is classified as an NPA by the bank during the second and third years.

Q.5 Can a unit with a low-interest rate from government agencies apply?

No, units already availing special low-interest rates from government agencies are not eligible for further subvention under this scheme.

Why Choose the Interest Subvention Scheme?

This scheme provides much-needed financial relief to Nano and household enterprises, enabling them to overcome initial challenges and establish sustainable businesses. By targeting marginalized groups like women and SC/ST entrepreneurs, the scheme ensures inclusive economic growth and empowers communities.

For further assistance or queries, contact:

• Official Website: Directorate of Industries & Commerce, Kerala
• Helpline Number: Contact your nearest Directorate office for updates and guidance.
• Scheme Details & Guidelines
• Apply Link – Available Schemes