Interest Subsidy

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DIC Interest Subsidy for Micro, Small and Medium Enterprises

We are providing consulting services for Term Loans and Business Loans from reputed Nationalized banks. Feel free to contact us via Email or Mobile. The Interest Subsidy is available for those who are planning to start a new factory, new business, or new manufacturing unit in Gujarat. Government of Gujarat offers a subsidy for such businesses.

Eligibility for this Benefit:

The enterprises which are registered as an industrial unit under the MSME Development Act, 2006 with the respective DIC are eligible to get benefits under the scheme for the following purposes:

• For establishing new enterprises that commence commercial production during the operative period of the scheme.
• For carrying out expansion or diversification with investment greater than 50% of its existing gross fixed capital investment.
• For modernization of an existing unit by investing more than 25% of its existing gross fixed capital investment to upgrade technology or production processes and/or improve the quality of products.

Conditions:

• The enterprise must obtain a term loan from a Financial Institution/Bank recognized by the Reserve Bank of India.
• The enterprise must apply within one year from the date of the first disbursement of the loan.
• The enterprise must start commercial operations within the operative period of the scheme.
• The interest subsidy will only apply to the interest levied by the Financial Institution. Penal interest or other charges will not be reimbursed.
• The interest subsidy will be available for five years or until the repayment of the loan, whichever is earlier.
• The enterprise must pay regular installments and interest to the financial institutions. If the enterprise defaults, it will not receive interest subsidy for the default period, and the defaulting period will be deducted from the five years subsidy period.
• The interest subsidy will be calculated from the date of payment of the first installment of the term loan.
• Disbursement will be made only after the unit begins commercial production.
• The unit must remain in production for at least five years from the commencement of commercial production.
• The unit must employ at least 85% of the total workforce and 60% of supervisory and managerial staff from local persons.
• Sick units will be eligible for benefits under the rehabilitation scheme as outlined separately under this resolution.
• Units with pending Government dues will not receive assistance under this scheme unless all dues are cleared.
• Benefiting enterprises must file annual information regarding production, sales, power consumption, and other details as requested by DIC on 31st March each year.

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