Government Loan
In a visionary move to foster entrepreneurship within every household and particularly empower women in the entrepreneurial realm, the Government of Kerala has sanctioned the groundbreaking “One Family One Enterprise” scheme. This initiative seeks to establish at least one Micro, Small, and Medium Enterprise (MSME) unit, encompassing manufacturing, service, or trade activities, in each family. Recognizing the pivotal role MSMEs play in the economic fabric, especially in Kerala, the scheme aims to provide a financial boost in the early stages of enterprise establishment.
Financial Support Mechanism
At the heart of the “One Family One Enterprise” Government Loan shcme lies a strategic focus on financial support, particularly in terms of interest subvention on term loans and/or working capital loans secured by MSME units from various financial institutions. The eligible institutions include Nationalized Banks, Scheduled Banks, KSIDC, KFC, KSFE, and Kerala Bank, reflecting a collaborative effort to facilitate comprehensive financial assistance.
Scope of Assistance and Target Beneficiaries
New MSMEs engaged in manufacturing, service, and trading activities are poised to benefit from this scheme. The financial support takes the form of interest subvention on a reimbursement basis, extending up to ₹10 lakhs for a period of five years from the date of disbursement of the first loan installment. In cases where the loan amount exceeds ₹10 lakhs, the interest subvention applies to the first ₹10 lakhs. A notable aspect of inclusivity is the commitment to having 50% of the beneficiaries under the scheme be women entrepreneurs, thereby fostering gender equality and empowerment.
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Interest Subvention Details
The rate of subvention is a critical factor in assessing the financial viability of the scheme. The government has capped the subvention rate at a maximum of 6%, representing the difference between the interest rate charged by the financial institution and a base rate of 4%.
Eligibility Criteria: Inclusivity and Accountability
To ensure the widespread reach of the scheme, eligibility criteria encompass new micro, small, and medium enterprises in manufacturing, service, and trading activities. Units that commenced operations or production on or after April 1, 2022, are eligible. A valid Udyam Registration is a prerequisite, and the unit must not have been declared a Non-Performing Asset (NPA) as per prevailing guidelines. The unit should be operational as of the date of application and should not have availed any grant assistance under other government schemes.
Seamless Online Application Process
The application process is designed for ease and accessibility. Applicants can submit their applications through the official website of the Directorate of Industries & Commerce, Government of Kerala. The step-by-step process involves registration, logging in, filling out the application form, and finally submitting it online. This digital approach ensures efficiency and transparency in the application process.
Required Documentation: Ensuring Compliance and Transparency
To substantiate the eligibility and facilitate the application process, a set of documents is required. These include identity proof of the promoter(s), Udyam Registration copy, partnership deed/memorandum and articles of association, loan sanction letter, project report approved by the financial institution, and other relevant documents depending on the nature of the unit.
In conclusion, the “One Family One Enterprise” scheme by the Government of Kerala stands as a testament to its commitment to grassroots entrepreneurship and economic empowerment. By providing tangible financial support and ensuring an inclusive approach, the scheme is poised to become a catalyst for sustainable economic growth and societal well-being.
