Interest Subsidy
Refund of a portion of interest paid on term loans for eligible MSME manufacturing units.
What is Interest Subsidy?
The Interest Subsidy scheme reimburses a portion of the interest cost incurred by eligible manufacturing MSMEs on term loans taken from scheduled commercial banks or financial institutions for setting up or expanding their unit.
Who Qualifies?
- MSME manufacturing units registered under Udyam
- Units with term loan from scheduled commercial bank
- New units and units undertaking approved expansion
- Units in GIDC industrial estates qualify for additional benefit
Subsidy Quantum / Benefit
5–7% per annum interest subsidy on term loan for a period of 5–7 years, subject to scheme-specific caps and loan amount limits.
How to Apply
File application on iPlus portal with Udyam certificate and loan sanction letter
Submit 6-month interest payment certificates from bank
DIC verification of unit commencement
Annual reimbursement processed by Industries Commissionerate
Expected Timeline
Annual reimbursement; first claim processable after 6 months of loan disbursement and unit commencement.
Frequently Asked Questions
What is interest subsidy for MSMEs in Gujarat?
Gujarat Industrial Policy reimburses 5–7% p.a. of interest paid on term loans for eligible MSME manufacturing units, for a period of 5–7 years. This substantially reduces your effective cost of borrowing.
How is interest subsidy paid?
As annual reimbursement — you pay the bank interest normally, then claim reimbursement from the Industries Commissionerate every 6-12 months with the bank's interest certificate and CA certificate.
Can I claim interest subsidy on any bank loan?
Only on term loans from scheduled commercial banks or notified financial institutions. Working capital, NBFC loans, and personal loans typically don't qualify. The loan purpose must match the eligible activity.
Claim This Subsidy
We assess your eligibility, prepare the application, and follow up until disbursement.
Enquire Now +91 97146 31847