Schemes and Initiatives by Kerala Government

Objective: Support financially stressed MSMEs to revive and continue operations.
Eligibility: Manufacturing MSMEs in Kerala, facing financial stress or potential closure.
Key Benefits:
- Margin Money Grant: 50% of bank margin for additional loans (up to ₹2 lakh).
- Interest Subvention: 6% annual reimbursement on new loans (up to ₹1 lakh).
- Restart Expenses: 50% of costs for plant & machinery, repairs (up to ₹1.5 lakh).
- Clearance of Statutory Dues: 50% of dues (up to ₹40,000).

Objective: Financial support for early-stage innovative start-ups in Kerala.
Eligibility: Start-ups in the innovation/product development stage, registered as a company.
Key Benefits:
- Loan Amount: Up to ₹25 lakh or 90% of project cost.
- Interest Rate: Approx. 6.5% per annum.
- Repayment Period: Up to 3 years.
- Conversion to Equity: Loan may be converted to equity if conditions are met.

Objective: Scale 1,000 MSMEs to ₹100 crore turnover within 4 years.
Eligibility: MSMEs operational for at least 3 years, with strong growth potential.
Key Benefits:
- Capital Subsidy: 40% of expansion cost, up to ₹2 crore.
- Interest Reimbursement: 50% of working capital interest (up to ₹50 lakh).
- DPR Assistance: Reimbursement for preparing scale-up plan (up to ₹1 lakh).
- Dedicated Officer Support: One-on-one mentoring.

Objective: Create 1 lakh new MSMEs in 2024-25 with state support.
Eligibility: New MSMEs established in FY 2024-25.
Key Benefits:
- Financial Support: Loans, licenses, and subsidies.
- Marketing & Networking: Campaigns and mentorship to promote new enterprises.
- Sustainability Support: Focus on long-term viability (70% success rate target).