How to Get Maximum Interest Subsidy under Interest Subsidy Scheme for MSME?
All your answers are here.
(1.1.2021 to 31.12.2025)
“Interest Subsidy Scheme” has been notified under the provisions of “Haryana Enterprises & Employment Policy, 2020”, with an objective to provide affordable credit to new Micro, Small & Medium Enterprises, Start-ups and enterprises operating for import substitution.
Have you started your Business After 1st Jan 2021?
The Incentives under this policy applicable for business who start up their operations after 1st Jan 2021 and this scheme is valid for 5 years till 31st Dec. 2025.
The industrial unit to which term loan has been sanctioned on or after 01.01.2021 & before 31.12.2025 are eligible for interest subsidy.
Examine your Business location falls under which Category?
In order to provide support, affordable credit to new Micro, Small & Medium Enterprises, Startup ideas and enterprises operating for import substitution in areas of ‘B’, ‘C’ & ‘D’ category blocks.
You can check status of Your area at our website with the following links:
List of Blocks Falling in A, B, C, D Category under HEEP 2020 Policy: Block Category – Haryana
Look your Business Eligibility for Interest subsidy under this scheme.
MSME & Startup business which have availed term loan from Financial Institutions/ Co-operative Banks/ Sarv Haryana Shetriya Gramin Bank/ Commercial Banks, after 01.01.2021, shall be eligible under the scheme.
The Industrial Units shall also comply with the following conditions:
- The unit shall file Udhyam Registration Certificate (URC) and Haryana Udhyam Memorandum (HUM) on the portal for statistical purpose (at any stage).
- The unit should not fall in the restrictive list as notified by the State Government from time to time.
- The unit should have obtained NOC/CLU from competent Authority, if applicable.
- The unit should be in commercial production.
- The unit should be in regular production at the time of disbursement and the subsidy shall not be released to the closed unit.
Assure your Type & Duration of loan:
This interest subsidy is available only in respect of term loan taken for the purposes of business. You can take loan the benefits of interest subsidy maximum for the period of 5 years.
Check your Business Can get Maximum Subsidy.
Interest subsidy depends upon your business block & term of loan. The same can be summarized as shown below:
- Interest subsidy @ 5% for Micro and Small Enterprises on term loan or maximum up to INR20.00 lakh per year, for 5 years, if your business blocks are ‘C’ & ‘D’ Categories Blocks.
- Interest subsidy @ 5% for Micro and Small Enterprises on term loan or maximum up to INR20.00 lakh per year, for 3 years, if your business block is ‘B’ Categories Blocks.
- Interest subsidy @ 6% for woman/SC/ST led Micro Enterprise on term loan or maximum up to INR20.00 lakh per year, for 5 years, if your business blocks are ‘B’, ‘C’ & ‘D’ Categories Blocks.
Examine your Business Can get Maximum Subsidy even in case of Expansion/Diversification.
Interest subsidy @ 5% for existing Micro and Small Enterprises, which have made additional investment at least 50% in plant and machinery in one go for expansion/ diversification of existing unit.
This will be available only one time during operational period of the scheme.
Check definitions are important For right subsidy claims.
- Medium Enterprises: Investment in Plant and Machinery or Equipment does not exceed INR 50 crore and turnover does not exceed INR 250 crore or as amended by GoI under the MSMED Act, 2006 time to time.
- Small Enterprise: Investment in Plant and Machinery or Equipment does not exceed INR 10 crore and turnover does not exceed INR 50 crore or as amended by GoI under the MSMED Act, 2006 from time to time.
- Micro Enterprise: Investment in Plant and Machinery or Equipment does not exceed INR 1 crore and turnover does not exceed INR 5 crores or as amended by GoI under the MSMED Act, 2006 from time to time.
In case you still are not very much clear about applicability or non applicability of this scheme with respect to your business, you can book appointment with kip consultants with following link https://forms.gle/cnb6qriDUc3KdKSG9
Check documents Required for Subsidy Claims.
The following documents are required in order to apply for the scheme:
- Udhyam Registration Certificate (URC) and Haryana Udhyam Memorandum (HUM) No. & Date.
- Certificate of Incorporation/ Partnership deed/Partnership registration/ Co-operative society registration.
- Board resolution/ Power of attorney.
- Certificate for Financial Institution/Bank concerned.
- CA Certificate regarding investment in plant & machinery for new unit/ expansion/ diversification.
- Copy of GST return/Audited Balance Sheet for last financial year (if applicable).
- Copy of first sale bill.
- Cost of project as approved by bank/ financial institution
Note : KIP Providers professional Services for application of Subsidy claims online at very reasonable prices. In case you want to apply for subsidy with our professional team, you can book your order at the following link https://forms.gle/cnb6qriDUc3KdKSG9
Our representative will contact you soon.
Assure your Time limit to apply does not Expire!
This is very and very important. In case you are not very much clear about documentation and process of application. Please done apply own and look for professional help. It is very much important to submit claim with in time line given below. In case you don’t apply with in time limits or your application become time barred and you eligibility stands expired. For your information’s : An enterprise shall forfeit its entitlement for the interest subsidy on term loan, if it does not submit its claim, complete in all respects within three months of the closing of the financial year of which incentive is being claimed or from the date of notification of the scheme, whichever is later.
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