Term Loan for Business in Ahmedabad and Gujarat
A term loan is a loan from a bank for a specific amount that has a specified
repayment schedule, either at a fixed or floating interest rate. A term loan is
often appropriate for an established small business with sound financial statements.
It may also require a substantial down payment to reduce the payment amounts and the
total cost of the loan. Businesses may require a term loan to fund day-to-day
operations, expand their business, or purchase new equipment.
Term loans for businesses in Ahmedabad and Gujarat are easily available with the help
of various government schemes aimed at meeting the working capital needs of MSMEs.
Since Gujarat has always been a leader in industrialization, obtaining a term loan
in Gujarat is not a big deal.
About Kuber Motive
Kuber Motive is recognized as a network of experienced Project Finance and Subsidy
Consultants in Gujarat. If you are seeking financial assistance and guidance in Bank
finance (Term Loan & Working Capital), Interest Subsidy, Capital Subsidy for all
manufacturing and Food Processing Units, State Government (Gujarat) Interest
Subsidy, SSI/MSI/LSI registration, etc., we are here to help. Our team is highly
experienced in Project Financing and Subsidy Consultancy and is well-versed with
Government regulations and legislation. We have successfully assisted manufacturing
units across Gujarat with their subsidy and finance requirements.
Who Will Be Eligible?
The following enterprises are eligible for assistance:
- Enterprises registered as Service Enterprises under the MSME Development Act,
2006 with the respective DIC as a service enterprise.
- Enterprises that set up a new service enterprise during the operative period of
the scheme, and begin service activity within the operative period.
Assistance Available:
The following assistance is available to eligible enterprises:
- Enterprises that have obtained the first disbursement of the loan during the
operative period of the scheme will be eligible for assistance.
- Interest subsidy will be reimbursed after payment to the bank/institution.
- New MSME Service Sector enterprises having investment in machinery and equipment
exceeding Rs. 5 lakhs will be eligible for an interest subsidy of 5% on the term
loan for machinery & equipment, with a maximum limit of Rs. 25 lakhs per annum,
for a period of 5 years.
- Enterprises set up with 100% equity contribution by youth (below 35 years) will
receive an additional 1% interest subsidy.
- Enterprises set up with 100% equity contribution by SC/ST/Physically Challenged
or Woman Entrepreneurs will receive an additional 1% interest subsidy.
- The maximum quantum of interest subsidy shall not exceed 7%.
- Assistance will be available to enterprises set up anywhere in the State with
permission from the appropriate local authority.
Conditions:
- The enterprise can opt to begin the interest subsidy from the date of first
disbursement of the loan or from the date of the first service bill, whichever
is applicable. This date will be final, and the 5-year period will start from
this date.
- The first service bill will be considered as the date of commencement of the
service activity.
- The interest subsidy will be reimbursed only to enterprises that pay regular
installments and interest to the financial institution. Enterprises that default
will not be eligible for subsidy reimbursement during the default period.
- If a term loan is sanctioned after one year from the date of the first service
bill, the enterprise will not be eligible for interest subsidy.
- Enterprises must apply to the concerned DIC in the prescribed format with the
necessary documents as specified in the checklist.
- The application must be submitted within one year from the date of the first
disbursement of the term loan or from the date of the first service bill,
whichever is later.
- Interest subsidy will be reimbursed only after the commencement of the service
activity.
- The investment made in Gujarat will be considered to determine the MSME status
for assistance eligibility.
- The enterprise must file information annually regarding production, sales, power
consumption, and other details as requested by DIC, by 31st March each year.
- The enterprise must employ at least 85% of its total workforce and 60% of
supervisory and managerial staff from local persons.
- The enterprise must provide an undertaking on its letterhead signed by an
authorized signatory confirming that all government dues are paid as of the
current date.
- The enterprise must comply with pollution control measures as prescribed by the
GPCB or other competent authorities.
- Service enterprises are not eligible for interest subsidy for expansion,
diversification, or modernization.
Contact Us