The One Family One Enterprise (OFOE) Scheme is an initiative by the Government of Kerala to promote entrepreneurship in every household by supporting the establishment of MSMEs, especially those led by women entrepreneurs. This scheme provides interest subvention on term loans and/or working capital loans up to ₹10 lakhs, aiming to ease the financial burden during the early stages of business operations. The scheme applies to enterprises engaged in manufacturing, service, and trading activities and was introduced for units that started operation on or after 1st April 2022.
Scheme Key Highlights (Short Summary)
• Department: Directorate of Industries & Commerce, Kerala
• Target: One MSME per family, with 50% women entrepreneurs
• Loan Type: Term Loan and/or Working Capital Loan
• Maximum Eligible Loan: ₹10 Lakhs
• Subvention Duration: 5 years
• Subvention Rate: Up to 6% (difference between charged rate and 4%)
• Eligibility Date: Units operational from 01/04/2022
• Application Mode: Online via Official Portal
Benefits
• Interest subvention on loans (up to ₹10 lakhs) for 5 years
• Subvention = Interest charged – 4% (maximum 6%)
• Applies to Term Loan, Working Capital Loan, or both
• Eligible even for units supported under PMFME scheme, with subvention applicable for working capital portion only
• Assistance disbursed via financing bank after signing agreement with authority
Eligibility
• New MSMEs in manufacturing, service, and trading sectors
• Unit must have commenced operations on or after 01/04/2022
• Must have valid Udyam Registration
• Loan accounts must not be classified as NPA at the time of claim
• Units must be operational at the time of application
• Must not have availed grant under any Central/State/LSG scheme
• Exception: Units under PMFME scheme are eligible under special conditions
Application Process
Online
• Step 1: Visit the Official Website of Directorate of Industries & Commerce
• Step 2: Select the scheme “One Family One Enterprise” → Click “Apply Now”
• Step 3: Register as a new user or login
• Step 4: Fill out the application form completely
• Step 5: Submit the application and retain reference number
Sanctioning & Recommending Authorities
• Recommending Authority: Assistant District Industries Officer (ADIO), Taluk Industries Office
• Sanctioning Authority: General Manager, District Industries Centre (DIC)
• Decision to be conveyed within 15 days of receiving a complete, defect-free application
• Assistance disbursed via the financing institution post agreement execution
Important Notes
• Apply after 6 months or 1 year of loan disbursement (within 3 months of that period)
• Delay condonation up to 1 year possible based on merit by GM, DIC
• Subvention reimbursed half-yearly or annually
Documents Required
• Identity proof of promoter(s)
• Udyam Registration copy
• Partnership deed/MOA/AOA/Bylaws (for non-proprietary units)
• Registration certificate (for firms, societies, companies)
• Board resolution (for applying for assistance)
• Bank’s loan sanction letter & recommendation letter
• Bank statement showing disbursement & repayment
• Approved project report
• PMFME supporting documents (if applicable)
• Condonation request (in case of delay)
• Title/lease deed or allotment order with remittance proof
• Proof of unit operation, production date, and compliance
Frequently Asked Questions (FAQs)
Q: What is the aim of the scheme?
A: To promote household entrepreneurship and support MSME creation in every family.
Q: What is the objective of the scheme?
A: To provide interest relief and financial support to new MSME units to ensure sustainability and growth.
Q: Which is the implementing department of this scheme?
A: Directorate of Industries & Commerce, Government of Kerala.
Q: Which types of enterprises are eligible to get the benefits of the scheme?
A: New MSMEs in manufacturing, service, and trading sectors with loans up to ₹10 lakh.
Q: What is the benefit of the scheme?
A: Interest subvention up to 6% on eligible loans for 5 years.
Q: What will be the maximum rate of subvention?
A: Up to 6%, as the difference between the interest charged and 4%.
Q: Will a unit/enterprise be eligible if it has availed any grant assistance under any scheme?
A: No, except for units supported under the PMFME scheme.
Q: Is there any exemption for the eligibility of the unit/enterprise?
A: Yes, PMFME-supported units are exempted and eligible under specific conditions.
Q: How can an applicant apply under the scheme?
A: Through the official portal of the Directorate of Industries & Commerce.
Q: What is the time duration to avail of the benefits of the scheme?
A: Within 6 months or 1 year post-loan disbursement, and application must be made within 3 months of that duration.