Interest Subvention Scheme for MSMEs
Ministry Of Micro, Small and Medium Enterprises
This scheme gives GST-registered MSMEs with Udyam registration a 2% interest subvention on fresh or incremental loans, reducing borrowing costs. Apply through your bank or NBFC while availing the loan; the lender processes the subvention claim.
Key facts
- Nodal ministry
- Ministry Of Micro, Small and Medium Enterprises
- Level
- Central
- Launched
- 2018
- Last date
- Check MSME Ministry for current scheme validity
- Helpline
- 1800-180-6763
What you get
GST-registered MSMEs get 2% interest subvention on incremental fresh or existing loans, reducing borrowing costs and improving access to affordable working capital and term loans.
Who is eligible
MSMEs registered under GST (with defined exemptions for specific categories) that have valid Udyam registration and take fresh/incremental loans from eligible lending institutions.
Documents you need
Udyam registration certificate, GST registration, loan account details, and bank/NBFC sanction letter.
How to apply
Apply through your bank or NBFC while availing a fresh or incremental MSME loan; the lending institution processes the interest subvention claim.
Frequently asked questions
How much interest subvention does this scheme provide?
2% subvention on incremental or fresh loans for eligible GST-registered MSMEs.
Is Udyam registration mandatory for this scheme?
Yes, valid Udyam registration is required to avail the interest subvention.
How do I claim the MSME interest subvention?
Your lending bank or NBFC processes the claim as part of your loan application; no separate application is needed.