The Scheme for Interest Subvention to Nano Household Enterprises has been launched by the Directorate of Industries & Commerce, Government of Kerala to support small-scale, job-oriented enterprises. It offers interest subvention on term loans for nano and household units engaged in manufacturing, service, and job work activities. The scheme aims to foster sustainable employment, support value-added services, and provide relief during the crucial early years of business operation. It is applicable to units with capital investment up to ₹10 Lakhs.
Scheme Key Highlights (Short Summary)
• Launched by: Directorate of Industries & Commerce, Kerala
• Capital Investment Limit: ₹10 Lakhs
• Interest Subvention: 6% (general), 8% (women/SC/ST)
• Duration: 3 years (on reimbursement basis)
• Loan Type: Term loan only
• Sectors: Manufacturing, Services, Job Work
• Mode of Application: Online & Offline
Benefits
• Interest subvention of 6% per annum for 3 years on term loans
• 8% interest subvention for Women and SC/ST entrepreneurs
• Subvention applicable on investments in:
• Plant & Machinery
• Other essential fixed assets
• Office equipment
• Electrification cost and land/building cost are excluded
• First-year subvention given regardless of repayment status
• Subvention for 2nd and 3rd years only if loan is not NPA
Eligibility
• Unit with fixed capital investment of ₹10 lakh or less
• Engaged in manufacturing, services, or job work
• Must fall under white or green category per pollution norms
• Connected load must not exceed 5 HP
• Applicant must provide full, true disclosures and cooperate with inspections
Exclusions
• Units eligible under Entrepreneur Support Scheme or other central/state schemes
• Units availing low-interest loans from government agencies
• Units in the negative list, such as:
• Photo studios, breweries, sawmills
• Soap grade sodium silicate, asbestos-heavy units
• Granite/metal crushers, steel re-rolling mills
• Cement (except from fly ash), cashew industries
• High power-intensive units exceeding 5000 KVA unless self-generated
Application Process
Online
• Visit the Official Portal of Directorate of Industries & Commerce
• Select the scheme “Interest Subvention to Nano Household Enterprises”
• Click “Apply Now” → Register (for new users) or Login
• After login, select “New Application” → Click ‘Proceed’
• Fill out the application form and submit
Offline
• Application can also be submitted through the District Industries Centre with required documents
Documents Required
• Copy of applicant’s identity proof
• Bank statement of term loan
• Statement of loan amount
• Promoter’s signed declaration
• Annexure II (Recommendation of financial institution)
• Additional documents if requested by authorities
Frequently Asked Questions (FAQs)
Q: What is the aim of the scheme?
A: To promote self-employment and strengthen nano/household enterprises through interest support.
Q: What are the objectives of the scheme?
A: Generate employment, support value-added services, and fill policy gaps not covered under other schemes.
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: Nano and household units in manufacturing, services, or job work with investment up to ₹10 Lakhs.
Q: What is the benefit of the scheme?
A: Interest subvention of 6% or 8% on term loans for 3 years.
Q: What is the percentage of interest subvention given to the special category enterprises?
A: 8% for women and SC/ST entrepreneurs.
Q: Shall the subvention be passed in the event of default of repayment of the loan?
A: No, subvention for 2nd and 3rd years will not be passed if the loan is classified as NPA.
Q: What are activities & services included in the Negative List?
A: Activities like breweries, photo studios, sawmills, asbestos-heavy units, granite crushing, cashew industries, etc.
Q: Which type of manufacturing units cannot apply under the scheme?
A: Units eligible under ESS or other government schemes.
Q: Can a unit which has availed low rate of interest from Government Agencies be eligible?
A: No, such units are excluded from this scheme.
Q: How can an applicant apply under the scheme?
A: Either through the online application portal or offline via District Industries Centre.
Sources and References
• Official Website
• Guidelines
• Amendment
• Application Portal