In 2019, MSME Schemes by the Government made waves of difference and brought financial stability to the sector.<\/p>\n
One of these is the Interest Subvention Scheme, and the Government has made further amendments to it, to help provide better access to credit for the MSME sector.<\/p>\n
In the 2019 budget, the Government declared that GST registered MSMEs get\u00a02% interest subvention from Government for incremental loans of Rs 1 crore under the MSME Credit scheme.<\/strong><\/p>\n In a positive move, the Government on Tuesday approved changes to operational guidelines of the Interest subvention scheme<\/strong> for the MSME sector.<\/p>\n In February, The Prime Minister announced a 2% interest subvention<\/span><\/a> for all GST registered MSMEs on fresh or incremental loans.<\/strong><\/p>\n The Scheme aims to encourage both manufacturing and service enterprises to increase productivity. The scheme also wants to provide incentives to MSMEs for onboarding on GST platform. This, in turn, helps MSMEs register their businesses and fall under the economy’s radar.<\/p>\n This MSME Scheme is open for a period of two financial years (FY-2019 and FY-2020)<\/p>\n Some of the major changes include:<\/p>\n Check the below requirements to be eligible for the scheme:<\/p>\n MSME exporters<\/strong> who avail interest subvention for pre-shipment or post-shipment credit under the Department of Commerce are not eligible for assistance.<\/p>\n For better outreach, all working capital or term loan<\/strong> is eligible for coverage to the extent of Rs100 lakh only during the availability of the MSME scheme.<\/p>\n Interest subvention is available for maximum financial assistance of Rs 100 lakh. This is in situations where MSMEs obtain working capital and term loan by a financial institution.<\/p>\nHow Interest Subvention MSME scheme works:<\/h2>\n
How it works:<\/h4>\n
\n
New changes and updates to the MSME scheme:<\/h2>\n
\n
Is your business eligible for the scheme?<\/h2>\n
\n