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

OFOE does not hand over a fixed sum. It reimburses part of the interest your lender charges, at a rate of up to a maximum of 6%, worked out as the difference between the interest rate charged by the financial institution and 4%. The calculation is done on term and/or working capital loan amounts of up to ₹10 lakh, and the benefit continues for five years from the date the first loan installment was disbursed.

It is neither a fresh loan nor an equity deal. OFOE is an interest subvention, which is a form of subsidy paid on a reimbursement basis. You first take the term or working capital loan from a bank or financial institution, and the scheme then refunds an eligible portion of the interest to your bank account. No equity is taken in your business, so the support is non-dilutive.

New MSME units in Kerala that work in manufacturing, service or trading are eligible. The unit must have availed a term loan and/or a working capital loan from an eligible financial institution, must have commenced operation or production on or after 01 April 2022, must hold a valid Udyam Registration, must not have its loan account declared an NPA, and must still be operational on the date it applies.

Yes. A valid Udyam Registration is a stated eligibility condition for the scheme, so the enterprise needs to be registered before the application is considered.

The scheme is built for new MSME units. There is one exception: enterprises that were supported under the PMFME scheme can also qualify, provided they commenced production after expansion, modernisation or diversification on or after 01 April 2022 — and even then, the benefit is limited to the working capital portion of their loan, up to ₹10 lakh.

As a general rule, a unit that has availed grant assistance from a Central, State or local government source is not eligible. The only exemption is for PMFME-supported units, and that exemption applies to the working capital part of the loan only.

No. OFOE runs on a rolling basis and stays open throughout the year, so there is no last date to race against. You can submit your application whenever your loan and Udyam Registration are in place.

Loans taken from Nationalized Banks, Scheduled Banks, KSIDC, KFC, KSFE and Kerala Bank are eligible for the subvention. If your borrowing is from an institution outside this list, the claim would not fall within the scheme's stated scope.

Applications are submitted online through the Directorate of Industries and Commerce portal at schemes.industry.kerala.gov.in. New users register first, fill in their details and then log in; existing users can log in straight away. Once logged in, complete the application form with all the required details and submit it online.

Once your application reaches the district level, the Assistant District Industries Officer screens it and forwards a recommendation to the General Manager of the District Industries Centre, who is the sanctioning authority. The GM is expected to dispose of complete, defect-free applications within 15 days of receipt. After the decision is communicated and you sign a legal agreement with the sanctioning authority, the assistance is routed through your financing institution and the eligible subvention is credited to your bank account on a half-yearly or yearly basis, as specified in the claim.

No. DPIIT (Startup India) recognition is not listed as a mandatory requirement for One Family One Enterprise Scheme (OFOE) — Up to 6% Interest Subvention, though having it can strengthen your application and unlock other benefits.

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. It is provided as non-dilutive funding.