Scheme for Interest Subvention to Nano Household Enterprises

The scheme “Scheme for Interest Subvention to Nano Household Enterprises” has been introduced to promote the Nano and household enterprises in the state. The scheme intends to provide financial assistance in the form of interest subvention to Nano and household enterprises on a reimbursement basis for the term loan availed by the unit. The units engaged in manufacturing, services as well and job work can apply under the scheme.

Objectives:

1. To generate employment opportunities in households through new self-employment projects (Nano/Household units)
2. To aggregate household/Nano units 85 increase the extent of potential employment.
3. To provide continuous and sustainable employment and increase the wage earning capacity of unorganized /household/units.
4. To address specific issues not covered under similar schemes of the Government of India/Government of Kerala.
5. The new scheme for providing financial assistance to Nano and household units is to support units with a capital investment of ₹10 Lakhs or less for manufacturing units engaged in job work and units engaged in service sector activities having any type of value addition in physical form by using machinery or equipment. The assistance is by way of interest subvention on the term loan availed for a period of three years on a reimbursement basis.
6. The assistance is provided for the first three years after the units are set up. In the first year assistance is given without considering prompt repayment. During the 2nd and 3rd year interest subvention is accorded if the loan is not classified by the bank as NPA. Thus it is a big relief in the early stages of business.
7. The unit will be monitored for financial health and symptoms of sickness can be found out well on time.
8. The units engaged in job work were hitherto not eligible for any sort of financial assistance other than under PMEGP.

Indicative List of Service Activities: The list which is given below is indicative; not exhaustive. Similar activities in the service sector having any type of value addition which is recommended by the District Level Committee will be also eligible.

1. Processing, Preserving & packaging of Meat & Fish.
2. Processing and preserving of fruits and vegetables.
3. Embroidery work and other ornamental trimmings.
4. Metal-working service activities & repair of fabricated metal products.
5. Repair & Services of Computers & peripheral equipment, projectors, Mobile phones, TVs, A/C, Video Cameras, Watches. Clocks, other electronic equipment & other household equipment.
6. Electrical Welding & Soldering
7. Laundry Services / Dry cleaning.
8. Photo copying
9. Repair and servicing and alteration of Motor Vehicles and related parts and accessories.
10. Tyre re-treading
11. Upholstery work
12. Repair & maintenance of boats, fishing boats, vessels and other floating structures.
13. Repair & maintenance of structural products
14. Repair & maintenance of pipes & pipelines
15. Repair & maintenance of metal tanks, reservoirs etc.
16. Repair of machinery engines, pumps and related equipment.
17. Treatment & disposal of waste of all kinds.
18. Other information service activities
19. Recycling
20. Workshop

Negative List:

Photo Studios and Colour Processing Centres, Breweries and Distilleries of all types, Sawmills, Soap Grade Sodium Silicate, Asbestos processing except units in which the quantum of asbestos used in the production process is less than 25% and environmental and occupational health hazards have been taken care of the satisfaction of authorities concerned, Metal Crushers including Granite Manufacturing units, All types of Steel Re-rolling Mills, Units manufacturing iron ingots, Calcium Carbide, Cement manufacturing except units manufacturing cement from fly ash, Potassium Chlorate, Cashew industrial units, Power intensive units based on electro-thermal/electrochemical processor units where total power requirement exceeds 5000 KVA of contract load or where the cost of power is more than 33% of cost of production of the items manufacture except where the units generate their power requirement in excess of 5000 KVA of contract load by own captive power.

1. The unit will be eligible for interest subvention to an extent of 6% per annum for the term loan availed by the unit on a reimbursement basis for three years.
2. For women and SC/ST enterprises, the interest subvention will be 8% for three years.
3. The assistance shall be limited to the fixed percentage of the composite investment upon
   (a) plant & machinery,
   (b) other fixed assets including essential office equipment and
   (c) Electrification cost of Land and Building shall not be included in the Fixed Capital Investment under this scheme.
   Note: In the event of default on repayment of the loan with interest at the end of 1st year, the subvention will not be passed. The same is applicable for 2nd and 3rd years.

A unit/enterprise which satisfies the following conditions is eligible for the scheme:

1. The fixed capital investment is 10 lakh or less.
2. Engaged in manufacturing, services, or job work.
3. In the white and the green category as per pollution control norms.
4. Connected load is 5 HP or less.

Obligations of the applicant entrepreneurs:

1. The applicant shall provide all required details and declare such information as to be true.
2. The applicant shall provide clarifications of further details sought by the recommending/sanctioning authority.
3. 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.
4. The applicant shall produce originals of any important documents if so required by the Recommending/ sanctioning Authority for verification.

1. Manufacturing units which are eligible to claim assistance under the Entrepreneur Support Scheme or any other schemes of Govt. of India or Govt. of Kerala cannot apply under the scheme.
2. Unit which has availed a special low rate of interest from Government Agencies are not eligible for further interest subvention under this scheme.

Online

Step 01: 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.
Step 02: The applicant may select the scheme “Scheme for Interest Subvention to Nano Household Enterprises” from the available Online Services listed on the home page and click on the “Apply Now” option. Clicking “Apply Now” redirects to the Login Page, if the user is a “new user”, use the “Registration” option and if already registered use the ‘Login’ option.
Step 03: A new user can register by filling in his/her details and after successful registration, the user can login.
Step 04: After successful login, the applicant needs to select “New Application” and click on the ‘Proceed’ Option.
Step 05: Fill out the application form completely and submit it.

Offline

Step 01: The scheme should be well notified through press releases/advertisements/notices in all major public places etc. before the commencement of the financial year.
Step 02: The application duly filled in the form given in the "Annexure-1" Scheme Guideline along with the required documents should be submitted to the ADIO of the taluk office concerned or DIC.
Step 03: The recommending/sanctioning authority shall request and accept further documentation or clarification from the applicant or financial institution.
Step 04: The recommending/sanctioning authority shall post the information regarding each individual applicant and inform the outcome of the application directly or electronically at the end of the quarter.
Note: There is no application fee for applying for financial assistance.