Additional Interest Subsidy in Rajasthan – MSME Policy 2024

In this article we will discuss everything about the new scheme for Additional Interest Subsidy in Rajasthan under the MSME Policy 2024. Find out who is eligible, what benefits are offered, how to apply, required documents, and approval timelines for MSMEs.

Introduction

The MSME sector plays a vital role in Rajasthan’s economic development by creating jobs and supporting local industries. To strengthen this sector, the Government of Rajasthan has introduced the MSME Policy 2024, which includes new financial support measures. One such initiative is a special scheme that offers additional interest subsidy and credit guarantee fee reimbursement to help entrepreneurs start or grow their businesses with easier access to finance.

What is Offered in This Scheme of Interest Subsidy in Rajasthan

Under the Rajasthan MSME Policy 2024, this scheme provides two major financial benefits to eligible MSMEs:

Additional Interest Subsidy

Businesses that have already received interest subsidy approval under RIPS 2024 can get extra interest subsidy on their term loans for plant and machinery. The additional subsidy rates are:

This means MSMEs can enjoy lower interest rates and reduce their financing burden even further.

This scheme will be in force till 31^st March, 2029.

Reimbursement of Credit Guarantee Fee

For loans up to Rs. 5 crore that are collateral-free and covered under the CGTMSE scheme, the state government will reimburse 100% of the Annual Credit Guarantee Fees paid to the bank. This benefit is available for up to 7 years, making it easier for small businesses to get loans without collateral.

In summary, the scheme helps reduce both the interest cost and the guarantee fee burden, encouraging more entrepreneurs to invest, expand, and grow in Rajasthan.

Who Are Eligible under this Scheme

To apply under this scheme, the enterprise must first be approved for interest subsidy under RIPS 2024. Once that is approved, the following types of businesses are eligible for additional benefits:

One District One Product (ODOP) Enterprises

MSMEs engaged in manufacturing or services related to a district’s identified ODOP category.

SC/ST or Women Entrepreneurs

Businesses owned and operated by entrepreneurs from Scheduled Castes (SC), Scheduled Tribes (ST), or women are eligible for support.

Young Entrepreneurs

Entrepreneurs aged between 18 and 45 years starting a new enterprise can apply, provided the loan amount does not exceed Rs, 10 crore.

Enterprises in Backward Areas

MSMEs located in Area Category 3, as defined in RIPS 2024, which includes less-developed or backward regions, are also eligible. Below areas are covered as Category 3 under RIPS 2024.

How to Apply for benefits in this Scheme

The application process under this scheme is straightforward but must be completed within the given time limit. Here’s how an eligible MSME can apply:

Step 1: Get RIPS 2024 Approval

Before applying under this scheme, the enterprise must have already received approval for interest subsidy under RIPS 2024.

Step 2: Submit Application Within 6 Months

The application for additional interest subsidy and credit guarantee reimbursement must be submitted within 6 months from the date of RIPS 2024 approval (EC issuance).

Step 3: Submit to the Appropriate Authority

For loans up to ₹10 crore (for plant and machinery): Apply to the General Manager (GM) of the District Industries & Commerce Centre (DICC) in your district.

For loans above ₹10 crore: Apply to the Commissioner, Industries & Commerce Department, Government of Rajasthan.

Step 4: Use Prescribed Application Form

Applications must be submitted in the prescribed format with all supporting documents. This form captures details of the enterprise, loan, RIPS approval, and eligibility.

What Are the Timelines for Approval

Once the application is submitted with all required documents, it is reviewed by the concerned approval committee based on the loan amount:

For loans up to ₹10 crore: The application is evaluated by the District Level Task Force Committee (DLTFC).

For loans above ₹10 crore: It is reviewed by the High-Level Task Force Committee (HLTFC) at the state level.

There is no fixed number of days mentioned in the guidelines for approval, but the committees are expected to process applications in a reasonable time after submission.

Condonation of Delay

If the enterprise fails to apply within the 6-month window (from RIPS 2024 approval), the relevant committee—DLTFC or HLTFC—has the power to condone the delay by up to an additional 6 months, provided that the applicant submits valid written reasons for the delay.

What documents are required to Apply for benefits in this Scheme?

To apply for benefits under the scheme, the following documents are required to be submitted along with the application.

1. Board Resolution/Power of attorney in the name of Authorized Signatory
2. Udyam Registration Certificate (URC)
3. Application made under RIPS 2024 along with the Project Report submitted
4. Loan sanction letter, repayment schedule(s) & disbursal schedule (till date of production) fromLending Institution/ bank(s)
5. Certification confirming utilization of loan for purchase of plant and machinery/ equipment or apparatus
6. Copy of first bill of sale / supply
7. Copy of Sanction/ Approval letter/ EC issued for Interest Subvention under RIPS 2024
8. Relevant certificates/ documents confirming adherence to the eligibility criteria
9. Undertaking/ Declaration on non-judicial stamp paper as per Annexure 1.3

Word Format of the Application Form

For applying for the benefits under this scheme you can download the word format of the application form and other attachments as below.

Application From in Annexure 1.1

CA Certificate in Annexure 1.2

Declaration in Annexure 1.3

Also Read

Benefits for MSME under RIPS 2024

Frequently Asked Questions (FAQs)

1. What is the interest subsidy scheme in Rajasthan under MSME Policy 2024?

The Rajasthan Government offers additional interest subsidy over and above RIPS 2024 benefits to support new and existing MSMEs. The scheme also reimburses 100% of CGTMSE guarantee fees for collateral-free loans up to ₹5 crore.

2. Who is eligible for interest subsidy in Rajasthan?

To be eligible, enterprises must be approved under RIPS 2024. Additional eligibility is given to ODOP units, SC/ST entrepreneurs, women entrepreneurs, youth (18–45 years), and units located in Category 3 areas as per RIPS.

3. How can I apply online for interest subsidy in Rajasthan?

Applications are not submitted through a public online portal. Eligible MSMEs must apply in the prescribed format to the GM, DICC (for loans up to ₹10 Cr) or the Commissioner, Industries & Commerce (for loans above ₹10 Cr), within 6 months of RIPS approval.

4. Is the interest subsidy scheme still applicable in 2024 and beyond?

Yes, the scheme under Rajasthan MSME Policy 2024 is active and will remain in force until 31st March 2029.

5. What is the difference between RIPS and the new interest subsidy scheme in Rajasthan?

RIPS 2024 offers base-level interest subsidies. The new scheme under MSME Policy 2024 provides additional interest subsidy (up to 2% extra) and credit guarantee fee reimbursement, especially for priority sectors and underserved entrepreneurs.

6. Is there a separate MSME subsidy scheme in Rajasthan apart from interest subsidy?

Yes, the MSME Policy 2024 also includes support for capital investment, infrastructure, seed capital for startups, and listing assistance for SMEs on stock exchanges.