Open to startups registered in India
Interest Subvention Scheme for MSMEs
Government of India
About This Scheme
2% interest subvention on MSME loans for GST-registered businesses 2% interest subvention on fresh and incremental term loans and working capital for GST-registered MSMEs. The subvention is credited quarterly to the MSME's loan account by the lender, who is reimbursed by the government. No separate application needed by the borrower.
Benefits
- The Interest Subvention Scheme reduces effective borrowing costs by 2% per annum on fresh and incremental term loans and working capital for eligible MSMEs. The benefit is credited directly to the borrower's loan account by the lending bank on a quarterly basis, with the government reimbursing the lender.
- No equity is taken and no repayment of the subsidy is required.
- The scheme helps MSMEs improve cash flow and reduce the burden of credit costs, particularly for working capital cycles.
How to Apply
Rolling basis
Quick Info
Amount / Funding
Varies
State / Region
Open to startups registered in India
Ministry / Dept
Government of India
Tags
Subsidy