Scheme for Interest Subvention to Nano Household Enterprises
By Directorate of Industries and Commerce, Government of Kerala
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Quick Answer
Interest subvention of 6% a year (8% for women or SC/ST) on term loans for nano and household enterprises in Kerala, for the first three years.
About this subsidy
Nano and household enterprises in Kerala doing manufacturing, services or job work can get interest subvention on term loans. The Government of Kerala pays it on a reimbursement basis for the first three years of the loan.
The rate is 6% per annum. It is 8% per annum for enterprises led by women or belonging to SC/ST categories. Prompt repayment in later years is a condition.
Fixed capital investment must be ₹10 Lakhs or less. The unit must fall under the white or green category as per pollution control norms and have a connected load of 5 HP or less. Units on the negative list of industries, such as breweries, sawmills and metal crushers, are not eligible.
Eligibility
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Full eligibility criteria — entity type, stage, sector, founder profile and registration requirements — plus your fit for this program. Sign up to view.
Subsidy providers
Benefits & Funding
What You Get
This scheme offers significant financial relief through interest subvention on term loans. Eligible units will receive a 6% per annum interest subvention for three years on their availed term loan. This percentage increases to 8% per annum for enterprises led by women or belonging to SC/ST categories, providing enhanced support for diverse entrepreneurship. The subvention is provided on a reimbursement basis, covering the interest component for the first three years of the loan. This direct financial support helps reduce the operational cost of borrowing, making it easier for new and early-stage nano enterprises to manage their finances and focus on growth. The assistance is tied to prompt repayment in subsequent years, encouraging sound financial management.
- Disbursement
- Reimbursement
- Bootstrap friendly
- Yes
Timelines & Process
Applications
Rolling basis
Selection Process
Applications, submitted either online or offline, will be reviewed by the recommending/sanctioning authority (ADIO or DIC). This authority may request further documentation or clarifications from the applicant or their financial institution to verify the details provided. Applicants are obligated to provide true information, furnish any sought clarifications, and allow inspections or verification of their assets if required. The recommending/sanctioning authority will inform applicants about the outcome of their application directly or electronically at the end of each quarter.
Application Process
- 1
Register/Login
New users register on the Directorate of Industries & Commerce portal; existing users log in.
You - 2
- 3
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How to apply
Four steps from draft to disbursement — one action each.
- 1
See the questions before you start
Download every question this programme's application form asks, so you can prepare your answers offline before opening the portal.
- 2
Line up your documents
Keep every document from the checklist ready in one folder. Missing docs are the #1 reason applications get bounced.
- 3
Submit on the official portal
Use the official application link and verify all details before final submission.
- 4
Follow up
Reach out 5–7 days after submitting to confirm receipt and ask about the review timeline.
Program templates & documents
Files the program publishes for applicants — download these and apply in the prescribed format.
Frequently Asked Questions
What is the primary benefit of the Scheme for Interest Subvention to Nano Household Enterprises?
The primary benefit is an interest subvention of 6% per annum on term loans availed by eligible units for a period of three years. For women and SC/ST enterprises, this subvention increases to 8% per annum.
What is the maximum capital investment allowed for eligibility?
The scheme supports units with a fixed capital investment of ₹10 Lakhs or less, specifically for manufacturing units engaged in job work and service sector activities.
Which types of businesses are eligible to apply?
Units engaged in manufacturing, services, and job work are eligible. There is an indicative list of service activities, but the scheme is broadly open to activities with value addition using machinery or equipment, excluding those on the negative list.
What are the pollution control requirements for eligible units?
Units must operate in the white or green category as per pollution control norms, and the connected load should be 5 HP or less.
How is the interest subvention disbursed?
The interest subvention is provided on a reimbursement basis for the term loan. For the 2nd and 3rd year, subvention is accorded if the loan is not classified as an NPA by the bank.
Are there any application fees for this scheme?
No, there is no application fee for applying for financial assistance under this scheme.
Sources
Data on this page is compiled from official program and provider references.
