One Family One Enterprises (OFOE)
The MSME's primarily rely on bank finance for their operations. Providing assistance in the early stage of establishment of the enterprise will enhance the competency of the MSME unit. The scheme intends to provide interest subvention on Term loan and/or Working capital loan availed by MSME units from financial institutions viz. Nationalised Banks, Scheduled Banks, KSIDC, KFC, KSFE and Kerala Bank. The units engaged in manufacturing, service and trading are eligible for the assistance. 50% of the beneficiaries under the scheme shall be women entrepreneurs.
The scheme envisages to encourage entrepreneurial activity in every household and to provide interest subvention for loan amount up to Rupees 10 lakh (for fixed capital loan and/ or working capital loan) of the project cost.
Eligibility for Applicants:
- All new micro, small and medium enterprises in manufacturing,service and trading activities, which availed Term Loan and/or Working Capital Loan, shall be eligible for assistance under this scheme.
- The MSME units, which commenced operation/production on or after 1/4/2022, are eligible for assistance under this scheme.
- The unit shall have a valid Udyam registration.
- As on the date of submission of the claim, the loan accounts should not have been declared as NPA as per extant guidelines in force.
- The unit shall be working as on date of application.
- The unit shall not have availed any grant assistance under any scheme of Central Government/State Government/ Local Self Government Department.
- Even though the scheme is for new units as item 1 above, an exemption is there for units supported by Prime Minister Formalisation of Micro Food Processing Enterprises (PMFME) scheme of the Ministry of Food Processing Industries, Govt. of India. In order to dovetail this scheme with the PMFME scheme - existing enterprises supported under PMFME scheme shall also be eligible for assistance under One Family One Enterprise (OFOE) scheme provided the unit commenced production after expansion/ modernisation/ diversification on or after 1/4/2022.
- Even though the scheme is not eligible for units who have availed any grant assistance under any scheme of Central Government/State Government/ Local Self Government Department as item 6 above, an exemption is there for units supported by Prime Minister Formalisation of Micro Food Processing Enterprises (PMFME) scheme of the Ministry of Food Processing Industries, Govt. of India. Units which have availed/are availing assistance under PMFME scheme shall be eligible for this assistance for the working capital portion alone up to loan amount of Rs.10 Lakh.
Entitlement of a successful Applicant:-
The assistance provided under this scheme shall be in the form of an interest subvention on reimbursement basis. All new MSME's engaged in manufacturing, service and trading activities shall be eligible for interest subvention on the interest charged by the financial institution on approved project for loan amount up to Rs.10 lakh (for Term loan and/or working capital loan) for a period of five years from the date of disbursement of the 1st installment of the loan by the financial institution. In case where the loan amount exceeds Rs.10 Lakh, the interest subvention shall be considered for loan up to Rs.10 Lakh only. The rate of subvention will be up to a maximum of 6%. The subvention will be the difference in the rate of interest charged by the financial institution and 4%.