Back to Schemes
Business & Entrepreneurship

"Grant of Margin Money for Availing the Capital Loan" Component of the "Development of Silk" Scheme

The scheme aims to encourage the entrepreneur to set up Silk Weaving Units in Puducherry. This margin money grants will reduce the initial financial burden on the entrepreneurs while availing term loan/working capital loan from the financial institutions for setting up of silk weaving units.

Authority

State/ UT

Region

Puducherry

Status

Verified 2026

Updated

March 2026

What you get

- 25% as margin money (restricted to ₹50,000/-) on the loan amount, upon receipt of sanction order from the financial institution. | - The amount is released to the bank on behalf of the entrepreneurs.

Who can apply

The applicant should belong to Puducherry by virtue of birth or by residence continuously for 5 years; The applicant should ascertain availability of loan.; The silk unit should be set up in Puducherry.; The unit should start its commercial production within six months from the date of release of the Margin Money Grant.; The income of the applicant and his/her family members should not be more than ₹1,00,000/- and above from all sources.

Required Paperwork

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

Common Questions

Where can I find the guidelines for the "Development of Silk" scheme?

Visit the official website https://dic.py.gov.in/development-of-silk for detailed scheme guidelines.

How do I get in touch with the concerned authorities regarding the "Grant of Margin Money for Availing the Capital Loan" component?

Contact details can be found at https://dic.py.gov.in/contact-us for any queries or assistance.

Where can I download the application form for the "Development of Silk" scheme?

Download the application form from https://dic.py.gov.in/application-forms-download-area.

How can I address grievances related to the "Development of Silk" scheme?

Utilize the Grievance Redressal Mechanism at https://industry.py.gov.in/grievance-redressal-mechanism for prompt resolution.

What percentage of margin money is provided on the loan amount under this scheme?

Beneficiaries receive 25% as margin money, capped at [?]50,000, upon sanction of the loan.

Who receives the margin money amount on behalf of the entrepreneurs?

The amount is released to the bank on behalf of the entrepreneurs who are availing term loan/working capital loan.

Where should the silk unit be established to be eligible for the scheme?

The silk unit must be set up within the geographical boundaries of Puducherry to qualify for the scheme.

What is the timeframe for starting commercial production after the release of the Margin Money Grant?

The unit should commence commercial production within six months from the date of receiving the Margin Money Grant.

What is the maximum allowable income for applicants and their family members under this scheme?

The income of the applicant and family members should not exceed [?]1,00,000 from all sources.

What should the undertaking letter assure regarding the operation of the silk unit?

The undertaking letter, on a [?]10/- stamped paper, should assure successful operation for five years after unit establishment.

Can the silk unit be located outside Puducherry and still be eligible for the scheme?

No, the silk unit must be established within Puducherry's geographical boundaries to qualify.

Is there a specific cap on the margin money provided to entrepreneurs?

Yes, the margin money is capped at [?]50,000, constituting 25% of the loan amount.