LIDCOM Margin Money Loan Scheme
By Leather Industries Development Corporation (LIDCOM), Government of Maharashtra
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Quick Answer
A margin money loan scheme by LIDCOM for the Scheduled Caste Charmakar community in Maharashtra, offering seed capital and subsidy for business projects.
- Funding amount
- ₹50,001 – ₹5L
- Funding type
- Debt
- Application deadline
- Rolling
- Location
- Maharashtra
About this loan
The LIDCOM Margin Money Loan Scheme, spearheaded by the Leather Industries Development Corporation (LIDCOM), Government of Maharashtra, is a targeted financial assistance program designed specifically for members of the Scheduled Caste Charmakar community (including Dhor, Chambhar, Holar, Mochi, etc.) in Maharashtra. This initiative aims to uplift the socio-economic status of these economically disadvantaged individuals by facilitating their entrepreneurial ventures. It provides crucial financial support for project costs ranging from ₹50,001 to ₹5,00,000. The scheme structures its support through a multi-pronged approach: LIDCOM contributes 20% of the project cost as seed capital, offered at a concessional interest rate of 4% per annum. Additionally, beneficiaries receive a direct subsidy of up to ₹10,000 from the Corporation. A key component of the scheme requires beneficiaries to contribute 5% of the total project cost as their own share, fostering a sense of ownership and commitment. The remaining 75% of the project cost is financed by a bank loan at prevailing interest rates. This integrated funding model ensures that eligible individuals receive comprehensive support to establish and grow their businesses, thereby achieving economic independence and social respectability within society. The scheme is a testament to the Maharashtra government's commitment to inclusive development and empowerment of marginalized communities.
Eligibility
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Grant providers
Provider
Leather Industries Development Corporation (LIDCOM), Government of MaharashtraMaharashtra · India
Benefits & Funding
- Amount
- ₹50,001 – ₹5L
- Fund type
- Debt
- Equity
- Equity-free
- Repayment
- Repayable
What You Get
The LIDCOM Margin Money Loan Scheme provides comprehensive financial support for eligible individuals. Beneficiaries can secure funding for project costs ranging from ₹50,001 to ₹5,00,000. This includes 20% of the project cost as seed capital directly from LIDCOM, offered at a highly concessional 4% annual interest rate. In addition to this low-interest seed capital, the scheme also provides a direct subsidy of up to ₹10,000 from the Corporation, reducing the overall financial burden on the entrepreneur. The remaining 75% of the project cost is facilitated through a bank loan at existing market rates, ensuring access to necessary capital. This structure, combined with the required 5% beneficiary contribution, ensures a balanced and supportive financial ecosystem for starting and sustaining a new business. The loan portion is repayable over 36 to 60 monthly installments.
- Disbursement
- Tranched
- Bootstrap friendly
- Yes
Timelines & Process
Applications
Rolling basis
Application Process
- 1
Obtain Application Form
Visit a LIDCOM office or designated center to obtain the official application form and guidelines.
You - 2
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How to apply
Four steps from draft to disbursement — one action each.
- 1
Draft your application
Answer the form inside the grant tracker — AI drafts each response using your past answers, so you're not starting from a blank page.
- 2
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.
- 3
Line up your documents
Keep every document from the checklist ready in one folder. Missing docs are the #1 reason applications get bounced.
- 4
Submit on the official portal
Use the official application link and verify all details before final submission.
- 5
Follow up
Reach out 5–7 days after submitting to confirm receipt and ask about the review timeline.
Frequently Asked Questions
Who is eligible to apply for the LIDCOM Margin Money Loan Scheme?
The scheme is open to Indian citizens who are permanent residents of Maharashtra, aged between 18 and 50 years. Applicants must belong to the Charmakar community (Dhor, Chambhar, Holar, Mochi, etc.) and have an annual family income not exceeding ₹1,00,000/-. They should also possess knowledge of the business for which they are seeking the loan.
What is the maximum project cost that can be supported under this scheme?
The scheme supports project costs ranging from ₹50,001 up to a maximum of ₹5,00,000.
What kind of financial assistance does the scheme provide?
The scheme offers 20% of the project cost as seed capital from LIDCOM at 4% interest per annum, a subsidy of up to ₹10,000, and facilitates a bank loan for the remaining 75% of the project cost. Beneficiaries must contribute 5% of the project cost as their share.
Is there an interest rate on the loan, and how long is the repayment period?
The seed capital from LIDCOM has a 4% annual interest rate. The bank loan portion is subject to the bank's existing rates. The total loan amount is repayable within 36 to 60 monthly installments.
What kind of businesses are eligible?
The scheme supports various businesses related to the Charmakar community's skills and entrepreneurial aspirations. There are no specific industry restrictions mentioned, as long as the applicant has knowledge of the business they intend to pursue.
How do I apply for this scheme?
The application process is offline. You need to obtain the application form from a LIDCOM office, fill it out with all required documents including proof of identity, residency, caste, income, and business plan, and submit it to the relevant office.
Sources
Data on this page is compiled from official program and provider references.
