2% Interest Subvention Scheme for MSME notified by RBI on 21-02-2019

Reserve Bank of India has notified 2% interest subvention scheme to MSMEs on 21-02-2019. Following are the salient features of the scheme.

Conditions for Eligibility

• SME should have valid Udhyog Aadhar Number and a Valid GSTN No.
• SME has taken term loan, working capital loan (fresh or increase) from 02-11-2018 to 31.03.2019.
• All term loans and working capital loans are eligible to the extent of Rs. 1 crore
• Loan from Scheduled Commercial Banks are eligible for the Scheme

Ineligible MSMEs

• Who are availing interest subvention for pre shipment and post shipment credit.
• Who are already availing interest subvention under any of the state or central government.

How much benefit is available

• Interest relief @ 2% on outstanding balance from the date of disbursement or the date of notification whichever is later.
• As on the filing of the date of claim, the loan account should not have become NPA.

Procedure for Claim

• Bank will claim benefit by submitting claim form to SIDBI
• Update your status as MSME with banks for claiming this benefit. Submit Udhyog Aadhar, Latest Balance Sheet and CA Certificate for claiming status as MSME with banks.
• Interest subvention will be available on half yearly basis

Download full RBI notification on interest subvention scheme – CLICK HERE

Download our one pager document on interest subvention scheme – CLICK HERE