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Business & Entrepreneurship

Scheme for Margin Money Grant to Nano Units

The scheme “Margin Money Grant to Nano Units” is a loan-linked scheme operated by Directorate of Industries & Commerce, Govt. of Kerala. The scheme aims to provide financial assistance to Nano units in the State, engaged in manufacturing,job work & service activity having any type of value addition.

Authority

State

Region

Kerala

Status

Verified 2026

Updated

March 2026

What you get

- Units with project costs up to ₹10 Lakhs will be covered in the scheme. | - Margin Money Grant of 30% to 40% of the Total Project cost according to the category of the applicant. | - Women, Youth (Age between 18 and 40), Differentially-Abled Persons, Ex-Servicemen, and persons belonging to the SC/ST category will be eligible for a 10% additional Grant. | - The maximum limit of margin money grant under the scheme shall be ₹4 lakhs per unit as follows. | a. Loan given by financial institution/KFC/Co-operative bank: Minimum 40 % of the project cost | b. Promoter’s contribution: Minimum 30 % of the project cost | c. Margin money grand by Industries department: 30 % of the project cost limited to a maximum of 3 lakhs | d. In case of special categories MMG will be 40 % of the project cost limited to a maximum of 4 lakhs and promoter’s contribution shall be 20%. | Financial Assistance: | CategoryLoan from Financial Institution (Minimum)Beneficiary Contribution (Minimum)Margin Money Grant (Maximum)General40%30%30%Special40%20%40%Note: The assistance under the scheme shall be released to the eligible entrepreneur by bank on a pro-rata basis.

Who can apply

All new Nano proprietary enterprises in manufacturing/food processing and job works and units engaged in the service sector having any type of value addition, whose project cost includes fixed capital and working capital up to 10 lakhs are eligible for assistance under the scheme.; The unit shall not have availed any grant assistance earlier under any schemes of the Government of India & Government of Kerala or Local Self Government Department.; The applicant shall provide all required details and declare such information as to be true.; The applicant shall provide clarifications of further details sought by the recommending/ sanctioning authority.; The applicant shall allow inspection or verification of any details mentioned in the application including plant and machinery and all other assets if so required by recommending/sanctioning authority.; Applicants shall produce originals of any important documents if so required by the recommending/ sanctioning authority for verification including:; Title deed of land/land tax receipt if any/Lease agreement/rent agreement as the case may be.; Ownership Certificate of the building if any.; Invoice or bill of Plant and machinery.; The applicant shall execute the requisite legal agreement online and if required on paper as and when the proposal is approved for implementation and furnish the signed hard copy subsequently via post or otherwise.; The applicant shall utilize the amount received only in the manner agreed upon.; The applicant shall operate the unit as stipulated in the agreement in which the quantum of support received, failing which the assistance shall be resumed by restoring the provisions of the Kerala Revenue Recovery Act.

Required Paperwork

  • Aadhaar Card
  • PAN Card
  • Income Certificate
  • Residence Proof (Domicile)

Common Questions

What is the aim of the scheme?

The scheme aims to provide financial assistance to Nano units in the State, engaged in manufacturing, job work, and service activity having any type of value addition.

What is the objective of the scheme?

The objective of the scheme is to promote/incentivize deserving entrepreneurs in setting up Nano enterprises within the State through Margin Money loans to Nano units for loan-linked projects.

Which is the implementing department of this scheme?

Industries & Commerce Department, Government of Kerala

Which types of enterprises are eligible to get the benefits of the scheme?

All new Nano proprietary enterprises in manufacturing/food processing and job works and units engaged in the service sector having any type of value addition, whose project cost includes fixed capital and working capital up to [?]10 lakhs are eligible for assistance under the scheme.

What is the benefit of the scheme?

Margin Money Grant of 30% to 40% of the Total Project cost according to the category of the applicant will be provided under the scheme.

What is the maximum limit of the margin money grant under the scheme?

The maximum limit of margin money grant under the scheme shall be [?]4 lakhs per unit.

How shall assistance be released to the eligible entrepreneur?

The assistance under the scheme shall be released to the eligible entrepreneur by bank on a pro-rata basis.

Will a unit/enterprise be eligible if it has availed any grant assistance earlier under any schemes?

No, the unit shall not have availed any grant assistance earlier under any schemes of the Government of India & Government of Kerala or Local Self Government Department.

Who will be given preference in this scheme?

Preference is given to special categories such as youth entrepreneurs up to the age of 40, women, handicapped persons, ex-servicemen, and persons belonging to SC/ST.

How much will the additional grant be given to the special category?

Women, Youth (Age between 18 and 40), Differentially-Abled Persons, Ex-Servicemen, and persons belonging to the SC/ST category will be eligible for a 10% additional Grant.

How can an applicant apply under the scheme?

Application can be submitted online through the Official website of the Directorate of Industries & Commerce, Government of Kerala. The applicant needs to visit the official website. https://schemes.industry.kerala.gov.in/public/index.php/nano