LIDCOM Margin Money Loan Scheme — ₹5L for Charmakar Businesses — Frequently Asked Questions

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.

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.

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.

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.

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.

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.

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.

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.

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.

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.

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.