Interest Subsidy on Bank Term Loan
Interest Subsidy on Bank Term Loan
Interest Subsidy Scheme- Capital is an important aspect of the business. For starting a new business or growing an existing one, capital is required. To meet regular capital requirements of the business, funds are raised through various sources. Taking loan from banks, financial institutions, etc. is one of such sources. Since, loan from banks/ financial institutions brings liquidity but it also comes with a burden of interest cost.
To lower the burden of entities, and to promote small businesses, the State Govt. of Haryana has launched the Interest Subsidy scheme. The scheme provides assistance on the interest amount which is paid by the entity on term loan.
Under this Scheme, Department of Industry will provide assistance to business entities falling in different blocks as specified by the government on the interest amount of term loan.
Who can take benefits of the scheme:
1. All Micro, Small, Medium, Start-ups units to which term loan has been sanctioned on or after 01.01.2021.
2. The unit shall file IEM/ Udyam Registration Certificate (URC) and Haryana Udhyam Memorandum (HUM) on the portal for statistical purpose, at any stage.
3. Unit should not fall in the restrictive list as notified by the State Government from time to time.
4. Should be in regular production at the time of disbursement and the subsidy shall not be released to the closed unit.
5. The unit should be in commercial production.
Financial Assistance/Subsidy/Benefits Available:
A. For MSME units:
Units under B Category Block- 5% of interest subsidy on term loan up to maximum Rs. 20 Lakh per year for 3 years.
Units under C & D Category Block- – 5% of interest subsidy on term loan up to maximum Rs 20 Lakh per year for 3 years.
Units which are led by Women/SC/ST and falling under B, C & D Category Block- 6% of interest subsidy on term loan up to maximum Rs 20 Lakh per year for 5 years.
B. For Start-up:
8% of interest subsidy up to maximum Rs 20 Lakh per year for a period of 5 years.
C. For MSME under falling under Thrust Sector/Import substitution:
Units under B Category Block- 6% of interest subsidy on term loan up to maximum Rs. 20 Lakh per year for 5 years.
Units under C & D Category Block- 6% of interest subsidy on term loan up to maximum Rs. 20 Lakh per year for 7 years.
D. For New Agro-based, Food Processing & Allied Industry/ Bio energy from Agricultural residue:
Units under B Category Block- 7% of interest subsidy on term loan up to maximum Rs. 20 Lakh per year for 5 years.
Units under C & D Category Block- 7% of interest subsidy on term loan up to maximum Rs. 20 Lakh per year for 7 years.
E. For Existing Units:
In case of Expansion/Diversification, subsidy is for at least 50% of additional investment made in plant & machinery of the original investment in plant & machinery of existing unit in one go.
Time Limit for Apply:
Within 3 Months from the closing of financial year for which incentive is being claimed.
1.Last date for applying under the above said scheme for financial year ending on March 31, 2022 is June 30, 2022.
2. Interest Subsidy on MSME Units is also provided by other states. So if you are running business outside Haryana state then you should focus on such state relevant policy.
If you have availed Bank Term Loan for New Business or Expand Existing Business then you should plan accordingly by taking benefits of the above said scheme.
We at KIP Launched the Warehouse Business & Subsidy Updates Plan for the investors/ businessman, who are interested or doing warehouse business.
We at KIP providing WAREHOUSE BUSINESS Services Since 2008.
To know more– https://kipfinancial.com/warehouse-business/
For joining– https://rzp.io/l/warehousebusinesssubsidy
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