IPSFACI
What this is
“Financial Assistance To Cottage Industries'' under the “Investment Promotion Scheme (IPS)”, implemented by the Dept. of Industries, U.T. Administration Of DNH & DD, aims to provide financial assistance to Cottage Industries on the term loan taken through banks.
In detail
The scheme “Financial Assistance To Cottage Industries” is a sub scheme under the “Investment Promotion Scheme (IPS)” for Cottage Industries. It was launched on 3rd July, 2015 for a period of five years by the Dept. of Industries, U.T. Administration Of Dadra & Nagar Haveli And Daman & Diu. Now it has been extended further from 20th May, 2022 and shall be operative till 19th May, 2027.
> Objective of the "Investment Promotion Scheme (IPS)”:
The scheme envisages to provide incentives and assistance to the MSME Sector in order to nurture them and protect them from market vagaries thereby making them vibrant and successful. therefore making the U.T. a Special Hub for the MSME sector; maximize Women participation in the business sector, reduce unemployment among the local residents and incentivize the industries to employ resident laborers etc.
> Objective of the "Financial Assistance To Cottage Industries" Sub-scheme:
Under this scheme, financial assistance shall be provided to Cottage Industries on the term loan taken through Nationalized Banks, Cooperative banks, Public sector Banks or Private Banks.
Who qualifies
- The applicant should be associated with Cottage Industry.
- The applicant should be above 18 years of age.
- The applicant should have passed minimum standard Four (IV).
- The applicant should have undergone training for minimum one month from Government of India recognized Institutes, in the area of the proposed business.
Or,
The applicant should have experience of minimum 1 year in the same activity
Or
The applicant should be hereditary craftsperson.
What you get
- Rate of Capital Subsidy: 25% of the term loan amount for setting up of the Cottage Industry up to a maximum of ₹5,00,000/-.
- Rate of Interest Subsidy: 50% of the Interest charged by Bank or NBFC or Cooperative Bank shall be reimbursed up to a period of 5 years from the date of commencement of Production.
Note:
- 10% additional capital subsidy shall be provided to Scheduled Castes/ Scheduled Tribes / Women/ Differently abled having 30% or more disability.
- Maximum limit of the Bank Loan should be ₹20,00,000/-.
not about the scheme.
Provenance
| schemeName | Investment Promotion Scheme (IPS) For Cottage Industries: Financial Assistance To Cottage Industries | myScheme · 2026-09-02 |
| schemeOpenDate | 2015-07-03 | myScheme · 2026-09-02 |
| schemeCloseDate | ... | not published at source |
| nodalMinistryName | ... | myScheme · 2026-09-02 |
| dbtScheme | False | myScheme · 2026-09-02 |
| achievement data | ... | no source publishes this for any central scheme |