INTEREST SUBVENTION SCHEME GUIDELINES FOR MSMES

To increase productivity and provides incentives to MSMEs for on-boarding on GST platform which helps in formalization of economy, while reducing the cost of credit.

This scheme Launched in 2018, its provides a 2% interest subvention on fresh or incremental loans for all GST registered MSMEs having valid Udyog Aadhar Number (UAN). It aims at encouraging both manufacturing and service enterprises. It will be in operation for a period of two financial years 2019 and 2020. Term loan/working capital extended during the FY 2019 and 2020 would be eligible for coverage. The term loan or working capital should have been extended by Scheduled Commercial Banks. In order to ensure maximum coverage and outreach, all working capital or term loan would be eligible for coverage to the extent of Rs. 100 lakh during the period of the Scheme.

Exceptions: MSMEs already availing interest subvention under the Schemes of the State/Central Government will not be eligible under the proposed Schemes:- The loan accounts on the date of filing claim should not declared as NPA.

Small Industries Development Bank of India (SIDBI) is the national-level nodal implementation agency for the scheme.

Trading activities without UAN have also made eligible for the scheme. Requirement of UAN dispensed with for units eligible for GST.

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