One Family One Enterprise Scheme (OFOE) — Up to 6% Interest Subvention

The One Family One Enterprise (OFOE) scheme is a Kerala government programme delivered by the state's Directorate of Industries and Commerce. Its ambition is simple to state: see that every household in the state has the chance to run at least one MSME unit — a manufacturing workshop, a service business or a trading concern.

Where most support schemes write a cheque, OFOE works on the cost of borrowing instead. Bank credit is what keeps small enterprises moving, so the scheme refunds a portion of the interest a unit pays its lender. That lowers the monthly outgo of a young business without adding a new loan on top of the one it already has.

The scheme also carries a clear inclusion target — half of all beneficiaries are to be women entrepreneurs — and it is aimed squarely at units that are still young, meaning those that began operations on or after 01 April 2022.

There is no closing date. Applications are accepted on a rolling basis through the Directorate's online scheme portal, and once a claim is approved the reimbursement reaches the unit's own bank account.

• Interest subvention of up to 6%, calculated as the gap between the lender's rate and 4%
• Calculated on term and/or working capital loans of up to ₹10 lakh
• Benefit runs for five years from the first loan disbursement
• Open to new Kerala MSMEs in manufacturing, service and trading, with Udyam Registration
• Applications accepted round the year with no closing date
• 50% of beneficiaries are targeted to be women entrepreneurs

OFOE is meant for new MSME units operating in Kerala. To qualify, a unit should meet the following conditions.

• It must be engaged in manufacturing, service or trading activity.
• It must have taken a term loan, a working capital loan, or both from an eligible financial institution.
• It must have commenced operation or production on or after 01 April 2022.
• It must hold a valid Udyam Registration.
• Its loan account must not be classified as a Non-Performing Asset (NPA).
• It must be operational on the date of application.

On other government support, the rule is generally that a unit should not have received grant assistance from any Central, State or local government source. The single exception is for enterprises supported under PMFME — and that exception applies only to the working capital portion of their loan.

One Family One Enterprise Scheme (OFOE) — Up to 6% Interest Subvention is open to startups at any stage. It is open to startups registered anywhere in India.

One Family One Enterprise Scheme (OFOE) — Up to 6% Interest Subvention accepts applications on a rolling basis — there is no fixed cut-off date, so eligible startups can apply at any time. Because rolling programmes can pause without notice, confirm the window is still open on the official site before you start.

The benefit here is interest subvention, which is paid out as a reimbursement rather than as an upfront cheque.

• Rate: subvention of up to a maximum of 6%. It is worked out as the gap between the rate your financial institution charges and 4%.
• Loan base: the subvention is calculated on term loan and/or working capital loan amounts of up to ₹10 lakh, even if the unit has borrowed more than that.
• Duration: five years, counted from the date the first loan installment was disbursed.
• Mode of payment: the eligible amount is credited to the unit's bank account, either half-yearly or yearly, as stated in the claim.
• Eligible lenders: Nationalized Banks, Scheduled Banks, KSIDC, KFC, KSFE and Kerala Bank.

The practical effect is that the effective cost of borrowing falls for the early years of a new enterprise, which is exactly when cash flow is tightest.

One Family One Enterprise Scheme (OFOE) — Up to 6% Interest Subvention is offered by Directorate of Industries and Commerce, Government of Kerala, a government body. As a government-backed subsidy, it is publicly funded and open to eligible startups across India.

Applications are handled at the district level, in two steps.

1. Screening and recommendation: the Assistant District Industries Officer (ADIO) at the Taluk Industries Office reviews the application for eligibility and forwards it with a recommendation. The ADIO is the recommending authority.
2. Sanction: the General Manager (GM) of the District Industries Centre is the sanctioning authority and is responsible for disposing of complete, defect-free applications within 15 days of receiving them.
3. Intimation: the decision is communicated to the applicant directly or electronically.
4. Agreement and disbursal: the applicant executes a legal agreement with the sanctioning authority, after which the assistance is routed through the financing institution. Eligible subvention is then reimbursed to the unit's bank account on a half-yearly or yearly basis.

Before you apply to One Family One Enterprise Scheme (OFOE) — Up to 6% Interest Subvention, keep the following documents ready:

• A pitch deck or short business plan describing the problem, product and traction
• Company registration documents and PAN
• Founder identification (PAN / Aadhaar) and brief profiles
• Recent financial statements or projections
• Product details — a demo, prototype or working link if available

Exact requirements are confirmed on the official application portal — treat this as a preparation checklist.