Grant of Margin Money for Availing Capital Loan (Development of Coir Scheme)
By Industries and Commerce Department, Government of Puducherry
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Quick Answer
A scheme by Puducherry's Department of Industries and Commerce offering 25% margin money, capped at ₹25 lakh, to entrepreneurs establishing or revitalizing coir industries.
- Funding amount
- Up to ₹25L
- Funding type
- Subsidy
- Application deadline
- Rolling
- Location
- Puducherry
About this subsidy
The 'Grant of Margin Money for Availing Capital Loan' is a crucial component of the 'Development of Coir' Scheme, spearheaded by the Department of Industries and Commerce, Union Territory of Puducherry. This initiative is designed to significantly boost entrepreneurship within the coir sector by providing financial incentives for establishing new coir industries or rejuvenating existing ones. The scheme specifically targets coir units operating exclusively within the geographical limits of the Union Territory of Puducherry, aiming to foster local economic growth and create employment opportunities. By offering margin money, the government seeks to alleviate the initial financial burden on entrepreneurs, making it considerably easier for them to secure essential capital loans from recognized financial institutions. This support is provided directly to the entrepreneurs upon the successful sanction of their project loan, ensuring that viable coir ventures receive the necessary capital to thrive and contribute effectively to the region's industrial landscape and sustainable development.
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
- Amount
- Up to ₹25L
What You Get
Entrepreneurs can receive 25% margin money, capped at ₹25 lakh, which is disbursed upon the financial institution's sanction of their project loan. This funding directly reduces the capital burden on the entrepreneur for projects valued up to ₹1 crore, making significant investments in coir infrastructure more accessible. The amount is meticulously released to the designated bank on behalf of the entrepreneur, thereby streamlining the process of accessing crucial capital loans for establishing or revitalizing coir units. This financial support is pivotal for facilitating the commencement of commercial production, which is expected to begin within six months of the margin money grant release, ensuring quick operationalization of supported ventures.
- Disbursement
- Lump Sum
- Bootstrap friendly
- Yes
Timelines & Process
Applications
Rolling basis
Selection Process
The selection process for the margin money grant is closely integrated with the financial approval from lending institutions. Applicants are required to first develop a robust project proposal for their coir unit and secure a capital loan sanction order from a recognized bank or financial entity. The Department of Industries and Commerce evaluates applications based on the authenticity of the project, its alignment with coir industry development, and the validity of the financial institution's sanction. Once a project is approved by a bank, the application for margin money is processed, ensuring that only commercially viable and bank-approved projects receive the grant. The timely release of margin money is contingent upon this prior financial sanction, emphasizing a multi-layered verification approach to support sustainable coir enterprises.
Application Process
- 1
Download Application Form
Download the prescribed application format from the official website.
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- 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 maximum margin money available?
The maximum margin money available under this scheme is ₹25 lakh, representing 25% of the project cost for projects up to ₹1 crore.
Who is eligible to apply?
The scheme is open to entrepreneurs establishing new coir units or revitalizing existing ones within the Union Territory of Puducherry.
How is the margin money disbursed?
The margin money is released to the bank on behalf of the entrepreneur once the financial institution sanctions the project loan.
What is the application process?
The application process is offline. Applicants must download the prescribed form, fill it out, attach necessary documents, and submit it in person at the District Industries Centre in Puducherry during office hours.
Is there a deadline for applications?
The scheme details do not specify a fixed deadline. Applications are accepted on an ongoing basis at the District Industries Centre.
