The Margin Money Grant to Nano Units Scheme is a flagship initiative by the Directorate of Industries and Commerce, Government of Kerala, designed to empower budding entrepreneurs by providing financial assistance for setting up Nano enterprises. The scheme encourages manufacturing, job work, and service activities that involve value addition, supporting Kerala’s vision for inclusive economic growth and self-reliance.

Key Highlights of Kerala MMGS

• Scheme Name: Margin Money Grant to Nano Units
• State: Kerala
• Department: Directorate of Industries and Commerce
• Target Group: New entrepreneurs setting up Nano Units (Project cost up to ₹10 lakh)
• Support Type: Margin Money Grant (Loan-Linked Assistance)
• Maximum Assistance: ₹4 lakh
• Application Mode: Online & Offline

Objectives of the Scheme

• Promote self-employment and micro-entrepreneurship through Nano Units
• Encourage value-added manufacturing and service activities
• Provide financial support through margin money grants linked to bank loans
• Offer special incentives to women, youth, differently-abled, SC/ST, and ex-servicemen entrepreneurs

Benefits

• Project cost eligibility: Up to ₹10 lakh per unit
• Margin Money Grant:

• General Category: 30% of the project cost (maximum ₹3 lakh)

• Special Categories: 40% of the project cost (maximum ₹4 lakh)
  • Special Category Includes:

• Women

• Youth (18–40 years)

• SC/ST communities

• Differently-abled persons

• Ex-servicemen
  • Grant is released pro-rata through the bank after promoter contribution and loan sanction.
  • Minimum promoter contribution:

• General: 30%

• Special Categories: 20%
  • Minimum institutional loan: 40% of project cost

Project Cost Components

• Land and land development (max 10%)
• Building construction (max 25%)
• Machinery, tools, accessories, furniture
• Electrification and pollution control devices
• Pre-operative expenses like registration, reports, drawings (max 10%)
• Contingency allowance (max 10%)
• Working capital (max 40% of project cost or one cycle)

Eligibility Criteria

• New Nano proprietary enterprises in manufacturing, food processing, job work, or service sector
• Project cost should not exceed ₹10 lakh (including fixed and working capital)
• The unit must not have received prior assistance under any Central/State/LSGD schemes
• Preference given to:

• Women (at least 30% of total beneficiaries)

• SC/ST, differently-abled, ex-servicemen

• Youth entrepreneurs up to 40 years of age
  • Unit must be functional at the time of grant disbursement
  • Must operate for at least three years after receiving assistance

How to Apply – Online/ Offline Modes

Online Application

Step 1: Visit the Official Website of the Kerala Industries Department
Step 2: Click on the scheme “One Family One Enterprise”
Step 3: Click ‘Apply Now’ to access the login/registration page
Step 4: New users must register using personal and enterprise details
Step 5: After logging in, fill in the application form completely and upload all required documents
Step 6: Submit the application form and keep a copy of the reference number

Offline Application

• Applicants may visit the District Industries Centre (DIC) for support
• Collect and submit the physical application form with all required documents

Essential Documents

• Detailed Project Report (DPR)
• Title Deed or Land Tax Receipt (if applicable)
• Ownership Certificate of building (if applicable)
• Registered Lease/Rent Deed (if applicable)
• Proforma invoice for machinery/equipment
• Engineer’s valuation for civil works (if any)
• Sanction letter from Bank/Financial Institution
• Any other document as required by the authority

Applicant’s Obligations

• Provide accurate information and clarifications when requested
• Allow verification/inspection of assets or plant & machinery
• Present original documents when requested
• Sign required legal agreements (digitally or offline)
• Use funds as specified in the approved plan
• Operate the unit as agreed, or risk fund recovery under the Kerala Revenue Recovery Act

Frequently Asked Questions (FAQs)

Q: What is the main aim of the scheme?
To support Nano enterprises with margin money grants for value-added projects in Kerala.

Q: Who implements this scheme?
The Directorate of Industries and Commerce, Government of Kerala.

Q: What types of units are eligible?
New proprietary Nano enterprises in manufacturing, job work, and service sectors with value addition.

Q: What is the maximum grant available?
₹4 lakh for special categories and ₹3 lakh for general category units.

Q: Will preference be given to any category?
Yes, priority is given to women, youth (18–40), SC/ST, differently-abled, and ex-servicemen.

Q: Can units that received earlier grants apply?
No, enterprises that received assistance under other state/central/local schemes are not eligible.

Q: How will the assistance be released?
The margin money will be disbursed via the bank on a pro-rata basis after the loan and promoter’s contribution.

Q: How to apply?
Apply online via the Kerala Industries website or submit offline at the District Industries Centre.

References & Useful Links

• Official Website – Directorate of Industries & Commerce, Kerala
• Application Portal – One Family One Enterprise
• Official Scheme Guidelines – Available at District Industries Centres

Download: Application Form PDF