The “Grant of Margin Money for Availing the Capital Loan” is a component under the “Development of Silk” Scheme by the Department of Industries and Commerce, Government of Puducherry. The objective is to promote the establishment of silk weaving units by providing financial relief through margin money support, thereby reducing the burden of initial capital investment.
Scheme Key Highlights (Short Summary)
• Margin money grant up to 25% of the loan amount
• Maximum benefit capped at ₹50,000
• Amount released directly to the bank on behalf of the entrepreneur
• Aimed at encouraging silk-based industries in Puducherry
• Offline application via District Industries Centre, Puducherry
Benefits
• 25% of the sanctioned loan amount (maximum ₹50,000) as margin money
• Margin money is directly released to the bank on the entrepreneur’s behalf
• Reduces the financial burden of setting up silk weaving units
Eligibility Criteria
• Applicant must be a resident of Puducherry by birth or 5 years of continuous residence
• Must obtain loan sanction letter from a financial institution
• Silk unit must be located in Puducherry
• Unit should start commercial production within 6 months from release of margin money
• Family income should not exceed ₹1,00,000 per annum
• Must agree to operate the unit for at least 5 years
Application Process
Offline
• Print the prescribed application form
• Fill the form, paste a photo, and attach all required documents
• Submit the application to the District Industries Centre, Thattanchavady, Puducherry – 605009
• A unique number will be assigned for tracking and future reference
Documents Required
• Birth Certificate or Residential Certificate
• Loan Sanction Letter from Bank/Financial Institution
• Income Certificate
• ₹10 Undertaking Letter (to operate unit for 5 years)
• Any other document as specified by the District Industries Centre
Frequently Asked Questions (FAQs)
Q: Where can I find the guidelines for the scheme?
The guidelines are available at the District Industries Centre and official government websites.
Q: How do I contact the concerned authorities?
You may visit the District Industries Centre at Thattanchavady, Puducherry.
Q: Where can I download the application form?
From the official portal or collect it from the District Industries Centre.
Q: What is the margin money percentage?
25% of the sanctioned loan amount, subject to a maximum of ₹50,000.
Q: Who receives the margin money?
It is transferred to the bank on behalf of the entrepreneur.
Q: Is it mandatory to start the unit in Puducherry?
Yes, only units located in Puducherry are eligible.
Q: When should production begin?
Within 6 months from the date of release of margin money.
Q: What is the income limit for applicants?
Total family income should be ₹1,00,000 or less per year.
Q: What should the undertaking letter state?
It should confirm the applicant will run the unit for 5 years.
Q: Can the unit be located outside Puducherry?
No, the scheme is only applicable within Puducherry.
Q: Is there a cap on margin money?
Yes, the maximum amount is ₹50,000.
Sources and References
• Scheme Guidelines
• Citizen’s Charter
• Application Form
• Contact