One Family One Enterprise Scheme

One Family One Enterprise Scheme is a scheme by the Government of Kerala that helps every household set up at least one MSME or trade unit. It offers interest subsidy on business loans to support new entrepreneurs, with special focus on women-led ventures across the state.

Applications for the scheme are being accepted in 2026 through the Directorate of Industries and Commerce, Government of Kerala. The scheme supports new units in manufacturing, service and trading with interest subsidy on term loans and working capital loans up to ₹10 lakh.

One Family One Enterprise Scheme - Introduction

One Family One Enterprise Scheme works as a way to grow local business by encouraging each household to start its own enterprise. The scheme aims to build a strong network of MSMEs across Kerala so that families get a steady source of income. By making the path to starting a business easier, the scheme helps turn business ideas into reality.

New MSMEs often face problems getting bank finance, so this scheme gives vital interest subsidy on term and working capital loans. The facility is available from financial institutions such as Nationalised Banks, Scheduled Banks, KSIDC, KFC, KSFE and Kerala Bank. Whether the unit is in manufacturing, service or trading, the scheme supports the business journey. Notably, 50% of the beneficiaries under this scheme are women entrepreneurs, which helps gender equality in business.

For example, if a person from Kozhikode starts a small textile unit, they can get support to lower their interest burden, making the business more stable in the early years. The scheme strengthens the local economy by supporting entrepreneurs through interest subsidy for loan amounts up to ₹10 lakh of the project cost.

Key Information

Benefits

The support under this scheme is given as an interest subsidy on a reimbursement basis. A new MSME in manufacturing, service or trading is eligible for support on approved project loans. The scheme covers loan amounts up to ₹10 lakh for a period of five years, starting from the date the bank pays the first installment.

If the total loan is more than ₹10 lakh, the subsidy stays applicable only on the first ₹10 lakh. The rate of subsidy is up to a maximum of 6%, calculated as the difference between the interest charged by the bank and 4%.

Eligibility

The following criteria must be met to qualify for this support:

1. The micro, small or medium enterprise must be new and engaged in manufacturing, service or trading.
2. The unit must have started operations on or after 01/04/2022.
3. A valid Udyam Registration is required.
4. The loan account should not be declared as NPA (Non-Performing Asset).
5. The unit must be active and working at the time of application.
6. Grant support should not have been received from any other Central or State government scheme, unless covered under the PMFME exemption.

Important Note: Units supported by the Prime Minister Formalisation of Micro Food Processing Enterprises (PMFME) scheme are eligible. If PMFME support has been received or is being received, the applicant may apply for working capital needs up to ₹10 lakh, provided production started after modernisation on or after 01/04/2022.

Obligations of the Applicant

Truthful information must be given, plant inspections allowed when asked, and proper bank documents submitted for loan payments. A legal agreement must be entered into as required. If operations stop early, the government may recover the financial support as per the Kerala Revenue Recovery Act, 1968.

Application Process

STEP 1 - Visit the official Directorate of Industries and Commerce website.

STEP 2 - On the homepage, select One Family One Enterprise Scheme and click Apply Now.

STEP 3 - If a new user, complete the registration process. If already registered, log in to the account.

STEP 4 - Fill the application form carefully with all required details.

STEP 5 - Submit the application after making sure all information is correct.

The Assistant District Industries Officer reviews the request and forwards it to the General Manager of the District Industries Centre, who is the sanctioning authority. The application is processed within 15 days. If any information is missing, officers notify the applicant, who gets 10 days to fix the defects.

Documents

Keep the following documents ready for the application:

• Self-attested photo identity proof of all promoters.
• Valid Udyam Registration certificate.
• Business registration documents such as partnership deeds, Memorandum of Association or society bye-laws.
• Official sanction letter and recommendation letter from the bank.
• Project report approved by the financial institution.
• Bank statements showing loan payment and repayment records.
• Supporting documents if applying under the PMFME scheme exemption.
• Requests for condonation if the application is submitted after the standard deadline.

References

Official Scheme Website

Full Scheme Guidelines

Direct Application Portal

FAQ's

What is the aim of One Family One Enterprise Scheme?

The scheme aims to set up at least one MSME unit in every family to encourage self-employment and the spirit of starting a business.

What is the maximum interest subsidy I can get?

The rate of subsidy can go up to a maximum of 6%, covering the difference between the bank interest rate and 4%.

Which documents are required for the application?

Udyam Registration, bank sanction letters, partnership or corporate registration documents, and a project report approved by the bank are required.

Can I apply if my unit already gets government grants?

Generally, support cannot be taken if other government grants have been received. However, an exception is made for units supported by the PMFME scheme under specific conditions.

What happens if there is a delay in filing the application?

The General Manager of the District Industries Centre can condone delays in specific cases on merit, but this period cannot exceed 1 year.