One Family One Enterprise Scheme (OFOE)
By Directorate of Industries and Commerce, Government of Kerala
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Quick Answer
Kerala scheme giving interest subvention of up to 6% on term loans and/or working capital loans up to ₹10 lakh to new MSMEs.
- Funding amount
- Varies
- Funding type
- Subsidy
- Application deadline
- Rolling
- Location
- Kerala
- Registrations needed
- Udyam registration
About this subsidy
New MSMEs in Kerala can get interest subvention of up to 6% on term loans and/or working capital loans of up to ₹10 lakh, for five years. The Government of Kerala's 'One Family One Enterprise' scheme aims to set up at least one MSME unit, including trade, in every family. It also aims for 50% of beneficiaries to be women entrepreneurs.
The loans can come from Nationalized Banks, Scheduled Banks, KSIDC, KFC, KSFE and Kerala Bank. The scheme is open to units in manufacturing, service and trading.
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
The scheme provides a significant financial benefit in the form of interest subvention on a reimbursement basis. Eligible new MSMEs, including those in manufacturing, service, and trading, can receive subvention on interest charged by financial institutions for loan amounts up to ₹10 lakh. This subvention is available for a period of five years from the date of disbursement of the first loan installment. The rate of subvention can be up to a maximum of 6%, calculated as the difference between the interest rate charged by the financial institution and 4%. This greatly reduces the effective cost of borrowing for early-stage enterprises.
- Disbursement
- Reimbursement
- Bootstrap friendly
- Yes
Timelines & Process
Applications
Rolling basis
Selection Process
Applications are initially screened by the Assistant District Industries Officer (ADIO) at the Taluk Industries Office, who acts as the recommending authority. The ADIO assesses the eligibility and forwards the application with a recommendation to the General Manager (GM) of the District Industries Centre, who serves as the sanctioning authority. The GM is responsible for disposing of completed, defect-free applications within 15 days from receipt. The decision is intimated directly or electronically to the applicant. The assistance is disbursed through the financing institution after the applicant executes a legal agreement with the sanctioning authority.
Application Process
- 1
Register
New users register on the Kerala Directorate of Industries & Commerce portal.
You - 2
- 3
- 4
- 5
- 6
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 'One Family One Enterprise' scheme?
The scheme, approved by the Government of Kerala, aims to encourage entrepreneurial activity in every household and empower women's entrepreneurship by facilitating the establishment of at least one MSME unit per family through interest subvention on bank loans.
What kind of financial assistance is provided?
The scheme provides interest subvention on Term loans and/or Working capital loans availed by MSME units from specified financial institutions. This assistance is on a reimbursement basis.
What is the maximum loan amount eligible for interest subvention?
The interest subvention is considered for loan amounts up to ₹10 lakh, even if the total loan amount availed by the MSME unit exceeds this limit.
What is the rate of interest subvention?
The rate of subvention can be up to a maximum of 6%. It is calculated as the difference between the interest rate charged by the financial institution and 4%.
For how long is the interest subvention provided?
The interest subvention is provided for a period of five years from the date of disbursement of the first installment of the loan by the financial institution.
Are existing units eligible for this scheme?
Generally, it is for new MSME units. However, existing enterprises supported under the Prime Minister Formalization of Micro Food Processing Enterprises (PMFME) scheme are also eligible, provided they commenced production after expansion/modernization/diversification on or after 01/04/2022, and for the working capital portion of their loan up to ₹10 Lakh.
Sources
Data on this page is compiled from official program and provider references.
