LIDCOM Margin Money Loan Scheme — ₹5L for Charmakar Businesses
A Maharashtra government debt scheme for Charmakar community entrepreneurs, financing business projects of ₹50,001 to ₹5,00,000 with 4% seed capital, a subsidy of up to ₹10,000 and a bank loan.
- Funding amount
- ₹50,001 – ₹5L (debt / loan)
- Funding type
- Debt / Loan
- Provider
- Leather Industries Development Corporation (LIDCOM), Government of Maharashtra (Government)
- Application deadline
- Rolling
- Eligible stage
- Any stage
- Location
- Open to startups registered in India
Overview
The LIDCOM Margin Money Loan Scheme is a debt-based funding window run by the Leather Industries Development Corporation (LIDCOM), a Government of Maharashtra undertaking. It is aimed at entrepreneurs from the Charmakar community — Dhor, Chambhar, Holar, Mochi and similar sub-castes — who fall under the Scheduled Caste category, and its purpose is to move them into self-employment by backing their own business projects.
Finance is arranged for ventures costing anywhere between ₹50,001 and ₹5,00,000. The Corporation's seed capital covers one-fifth of the outlay at a concessional 4% per annum, a subsidy of as much as ₹10,000 is added on top, and the balance of three-fourths is raised as a bank loan at the prevailing market rate. The applicant brings 5% of the total outlay from their own pocket.
Because the scheme runs on a rolling basis with no fixed closing date, applications can be filed at any point in the year. The process itself is offline — forms, guidelines and document checks all happen through LIDCOM offices. Combined with the income and age conditions, the scheme suits a first-generation entrepreneur in Maharashtra who already understands the trade they want to enter.
Highlights
- Margin money loan for business projects of ₹50,001 to ₹5,00,000
- LIDCOM seed capital charged at 4% per annum
- Direct subsidy of up to ₹10,000 from the Corporation
- Open to the Charmakar community in Maharashtra
- Applicant must arrange 5% of the total outlay
- Repayment spread over 36 to 60 monthly instalments
Who can apply
- Citizenship: the applicant must be a citizen of India.
- Domicile: permanent residence in Maharashtra is required.
- Age: applicants should be between 18 and 50 years old.
- Community: only members of the Charmakar community (Dhor, Chambhar, Holar, Mochi and similar sub-castes), a Scheduled Caste, may apply.
- Income: the family's yearly income must be ₹1,00,000 or less.
- Business knowledge: the applicant needs working knowledge of the trade or business for which finance is being sought.
LIDCOM Margin Money Loan Scheme — ₹5L for Charmakar Businesses is open to startups at any stage. It is open to startups registered anywhere in India.
- Eligible stage
- Any stage
- Location
- Open to startups registered in India
Deadline & timing
LIDCOM Margin Money Loan Scheme — ₹5L for Charmakar Businesses 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.
What the funding covers
Support under the scheme is sized around the full cost of the project, which must fall between ₹50,001 and ₹5,00,000. That outlay is met from four sides.
- LIDCOM seed capital: one-fifth of the project outlay, priced at a concessional 4% per annum.
- Subsidy: a direct benefit of up to ₹10,000 from the Corporation.
- Bank loan: the remaining three-fourths, sanctioned by a partner bank at its existing market rate.
- Beneficiary share: a mandatory 5% of the total outlay arranged by the applicant.
Repayment of the loan component is scheduled across 36 to 60 monthly instalments.
About the provider
LIDCOM Margin Money Loan Scheme — ₹5L for Charmakar Businesses is offered by Leather Industries Development Corporation (LIDCOM), Government of Maharashtra, a government body. As a government-backed debt / loan, it is publicly funded and open to eligible startups across India.
How to apply
Applications are submitted on the . Confirm the current deadline and document checklist there before you start.
Selection process
Applications are received offline, and screening begins once the file reaches the LIDCOM office.
- Submission: the form, supporting papers and project report are handed in at a LIDCOM office or designated application centre.
- Screening: officials check that the paperwork is complete and that the applicant satisfies the community, income, age and domicile conditions.
- Evaluation: the proposed project and its costing are examined by the scheme authorities together with the partner bank.
- Interview: shortlisted applicants may be called for an interview as part of the assessment.
Documents you’ll need
Before you apply to LIDCOM Margin Money Loan Scheme — ₹5L for Charmakar Businesses, 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.
Who this is best for
LIDCOM Margin Money Loan Scheme — ₹5L for Charmakar Businesses is best suited for startups in India seeking non-dilutive funding of ₹50,001 – ₹5L. If that describes your startup, review the eligibility criteria above before applying.
Frequently asked questions
How much funding does the LIDCOM Margin Money Loan Scheme offer?
The scheme works on projects costing between ₹50,001 and ₹5,00,000, so that is the outer limit of the support. Within that, LIDCOM's seed capital covers one-fifth of the outlay at 4% per annum, a subsidy of up to ₹10,000 is added, and the remaining three-fourths comes as a bank loan. You are expected to fund 5% of the total yourself.
Who can apply for this scheme?
Applicants must be Indian citizens and permanent residents of Maharashtra, aged between 18 and 50 years. They have to belong to the Charmakar community, which includes Dhor, Chambhar, Holar and Mochi, and the family's annual income must not cross ₹1,00,000. Some working knowledge of the business being proposed is also required.
Is there an application deadline for this scheme?
No. The scheme runs on a rolling basis and is always open, so there is no last date to beat. Applications are submitted offline at LIDCOM offices and are taken up as they come in.
Does the scheme take equity in my business?
No. This is a debt scheme — the assistance arrives as seed capital, a subsidy and a bank loan, and no shares or ownership stake are taken in return. The seed capital and the bank loan are repayable.
Do I need DPIIT recognition or MSME registration to apply?
The scheme's stated conditions do not include DPIIT recognition or MSME/Udyam registration. What matters is Indian citizenship, Maharashtra residency, the 18 to 50 age band, Charmakar community status, family income within ₹1,00,000 a year, and familiarity with the proposed business.
What documents are typically needed?
You will need proof of identity, proof of Maharashtra residency, a caste certificate for the Charmakar community, age proof, a family income certificate showing income of ₹1,00,000 or less per year, and a project report or business plan setting out the proposed venture and its costs. The 5% beneficiary contribution also has to be arranged before submission.
How do I apply for the LIDCOM Margin Money Loan Scheme?
Applications are handled offline. Visit the nearest LIDCOM office or a designated application centre, collect the form and the scheme guidelines, fill in the personal, financial and business details, attach the supporting documents and submit the complete set to the office. Scheme details are also published at https://www.lidcom.co.in/lidcom-margin-money-loan-scheme.php.
What kind of business can I propose under this scheme?
There are no industry restrictions listed in the scheme. The venture can be anything you have knowledge of, since the eligibility condition is that the applicant understands the business they are seeking finance for. Projects are assessed on the strength of the business plan and its costing.
What interest is charged, and how long do I have to repay?
The seed capital from LIDCOM carries a concessional interest of 4% per annum. The bank loan portion is charged at the partner bank's prevailing rate. The loan amount is repayable across 36 to 60 monthly instalments.
How is my application assessed?
Once the form and documents reach the LIDCOM office, they are screened for completeness and for the eligibility conditions. The project and its costing are then evaluated by the scheme authorities along with the partner bank, and shortlisted applicants may be called for an interview before a decision is taken.
Who offers LIDCOM Margin Money Loan Scheme — ₹5L for Charmakar Businesses?
LIDCOM Margin Money Loan Scheme — ₹5L for Charmakar Businesses is offered by Leather Industries Development Corporation (LIDCOM), Government of Maharashtra, a government body. It is provided as non-dilutive funding.
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