Margin Money Grant for Nano Units, Kerala — Up to ₹4 Lakh — Frequently Asked Questions

It depends on which category you fall under. A general category applicant receives 30% of the project cost, capped at ₹3 lakhs. If you belong to a special category — woman, youth aged 18-40, differently-abled person, ex-serviceman or SC/ST — the rate rises to 40% of project cost, capped at ₹4 lakhs.

It is neither a loan nor an equity investment. The margin money grant is non-repayable and no stake in your enterprise is taken. It is, however, loan-linked in the sense that the grant is meant to sit alongside a project loan sanctioned by a bank or financial institution, and it reduces the promoter's contribution that you would otherwise have to fund yourself.

There is no closing date. The scheme runs on a rolling basis and applications can be submitted at any point in the year through the channels described by the Directorate of Industries and Commerce.

A Nano unit here means a new proprietary enterprise involved in manufacturing, food processing, job works, or service activities that involve value addition, where the total project cost — fixed capital and working capital together — does not exceed ₹10 lakhs.

No. Any unit that has previously availed grant assistance under a scheme of the Government of India, the Government of Kerala, or a Local Self Government Department is excluded from applying.

There is no bar on older applicants. Age matters only in the sense that entrepreneurs between 18 and 40 years fall into the youth category, which receives the enhanced grant rate and the higher ₹4 lakh ceiling. Youth entrepreneurs up to 40 are also treated as a priority group.

General category promoters must contribute at least 30% of the project cost. Special category promoters need to contribute at least 20%. Because the grant is adjusted against this contribution, the effective cash you arrange upfront is lower than the headline percentage suggests.

Eligible components include land and land development up to 10%, building costs up to 25%, plant and machinery, electrification, preliminary and pre-operative expenses up to 10%, a contingency allowance up to 10%, and working capital up to 40% or one working cycle, whichever is less.

Both online and offline routes are available. Online, you go to the Directorate of Industries and Commerce schemes portal, reach the One Family One Enterprise scheme section and register as a new user before logging in to fill the form. Offline, you download the application form, complete it, and attach supporting documents — importantly the bank's sanction letter and recommendation, plus a passbook copy proving your contribution has been remitted. The package goes to the Assistant District Industries Officer at the relevant Taluk Industries Office.

The key attachments are the sanction letter and recommendation from your bank or financial institution, and a copy of your passbook showing that the beneficiary contribution has been paid in. The application form itself must be completed accurately, whether you file it online or offline.

A unit that receives this assistance is required to keep operating continuously for three years from the date the grant is received. If it fails to do so, the assistance can be recovered under the Kerala Revenue Recovery Act.

No. DPIIT (Startup India) recognition is not listed as a mandatory requirement for Margin Money Grant for Nano Units, Kerala — Up to ₹4 Lakh, though having it can strengthen your application and unlock other benefits.

Margin Money Grant for Nano Units, Kerala — Up to ₹4 Lakh is open to startups at any stage. It is open to startups registered anywhere in India.

Margin Money Grant for Nano Units, Kerala — Up to ₹4 Lakh is offered by Directorate of Industries and Commerce, Government of Kerala, a government body. It is provided as non-dilutive funding.

Apply directly through the official application link on this page. Review the eligibility criteria and prepare your startup documents before you begin.