For many businesses, the cost of borrowing is one of the biggest challenges when setting up or expanding operations. To support entrepreneurs and industries, the Rajasthan government has introduced an attractive interest subsidy in Rajasthan under RIPS 2024.
In this scheme the government is providing interest subsidy on term loans taken from banks for the purpose of plant, machinery, and equipment for new enterprise or for doing expansion in the existing enterprise.
Eligibility Criteria for Interest Subsidy in Rajasthan
The subsidy is available to a wide range of enterprises. The key eligibility rules are:
- Type of Loan: Only term loans for plant, machinery, equipment, or apparatus are covered. Working capital loans are not eligible.
- Enterprise Type:
- Micro, Small, and Medium Enterprises (MSMEs)
- Khadi enterprises (special 10-year benefit)
- Agro-based industries
- Beneficiaries under Rajasthan Rural Tourism Policy
- Geography: Units must be set up or operating within Rajasthan.
- Compliance: You must maintain proper loan sanction letters, disbursal schedules, repayment schedules, and utilization certificates.
How much Interest Subsidy is available in Rajasthan under RIPS 2024?
The interest subsidy in Rajasthan under RIPS 2024 is available as per below slabs.
| Loan amount for plant and machinery, equipment or apparatus | Interest Subvention per year |
| Upto Rs. 5 Crores | 6% |
| Above Rs. 5 Crores to Rs. 10 Crores | 4% |
| Above Rs. 10 Crores | 3% |
| Loans upto Rs. 25 Lacs taken by Rajasthan Rural Tourism Units and Agro based industries | 1% additional interest subsidy over and above slab |
Telescopic application of above slab in Interest Subsidy Calculation
The interest subsidy in Rajasthan under RIPS 2024 is calculated on a telescopic basis, which means different portions of the loan are eligible for different subsidy rates, instead of applying a single rate on the entire loan. For example, if an enterprise takes a loan of Rs. 6 crore, the first Rs. 5 crore will get a 6% subsidy, while the remaining Rs. 1 crore will get a 4% subsidy. This ensures that businesses benefit fairly across loan sizes, with higher subsidy rates applied to the lower slabs.
Period for which Interest Subsidy in Rajasthan is available?
Interest subsidy in Rajasthan under RIPS is avaialble for the following duration.
- Standard period: 7 years from the date of issue of eligiblity certificate.
- For Khadi enterprises: 10 years from the date of issue of elibility certificate.
You must claim the benefit annually with all required supporting documents.
What Documents are required for claiming interest subsidy in Rajasthan?
When applying for interest subsidy, you’ll need to provide:
- Loan sanction letter from your bank
- Disbursal schedule (till commencement of commercial operations)
- Repayment schedule
- Utilization certificate confirming use of loan for eligible assets
- Documents related to refinance or takeover, if applicable
These documents must be submitted each year to continue receiving the subsidy.
How to Apply for Interest subsidy in Rajasthan?
- Check eligibility under RIPS 2024 for your project.
- Get loan sanctioned for plant & machinery or apparatus.
- Collect required documents (sanction letter, repayment schedule, utilization certificate).
- Submit Form 3B(1) with the State authorities, along with all supporting documents.
- Claim annually for 7 or 10 years, depending on your category.
Maximize Your Interest Subsidy: Practical Tips
- Plan your loan breakup: If possible, structure your borrowing so that the first ₹5 crore qualifies for the 6% subsidy.
- Target the extra 1% top-up: Agro-based and rural tourism enterprises should ensure loans are structured within the ₹25 lakh slab to capture the additional benefit.
- Maintain clean documentation: Missing or incorrect records can lead to delays or rejection of claims.
- Use a calculator before applying: Estimate your savings so you can plan repayments and reinvest the subsidy effectively.
Check Out Our Free Interest Subsidy in Rajasthan Calculator
To make this easier, we’ve created an Interest subsidy in Rajasthan Calculator. Just enter your loan amount, repayment period, and interest rate, and it will show you:
- Annual interest payable
- Eligible subsidy as per RIPS 2024
- Net interest cost after subsidy
Frequently Asked Questions on Interest Subsidy in Rajasthan
1. What is the new RIPS policy in Rajasthan?
The Rajasthan Investment Promotion Scheme (RIPS) 2024 is the state’s flagship policy to attract and support industrial investment. It provides incentives such as interest subsidy, SGST reimbursement, and other benefits to promote growth of MSMEs, agro-based industries, logistics, and tourism.
2. Who is eligible for interest subsidy in Rajasthan?
MSMEs, Khadi enterprises, agro-based industries, and beneficiaries under the Rural Tourism Policy are eligible. The loan must be a term loan for plant, machinery, equipment, or apparatus.
3. How much interest subsidy is available in Rajasthan?
The subsidy ranges between 3% and 6%, depending on the term loan size:
Term Loan Up to ₹5 crore → 6%
Term Loan from ₹5–10 crore → 4%
Term Loan ₹10–50 crore → 3%
For agro-based and rural tourism units with loans up to ₹25 lakh, there is an additional 1% subsidy.
4. How can I apply for interest subsidy in Rajasthan?
Applications are made in prescribed forms (such as Form 3B(1)) under RIPS 2024. You need to submit documents like the loan sanction letter, disbursal schedule, repayment schedule, and utilization certificate. The subsidy is claimed annually for the approved period.
5. Is there an MSME subsidy scheme in Rajasthan?
Yes. MSMEs can avail benefits under RIPS 2024, including interest subsidy on loans, along with other state-level incentives designed to promote small and medium industries.
6. Does Rajasthan offer a warehouse subsidy scheme?
Yes. RIPS 2024 extends benefits to logistics infrastructure, which includes warehouses. Interest subsidy is available if the loan is taken for building or expanding logistics facilities, subject to scheme conditions.
7. Can I apply for Rajasthan interest subsidy online?
Yes. The application process is available online through the designated state government portal. Supporting documents such as sanction letters and utilization certificates must be uploaded as part of the claim.
9. What is the subsidy available under RIPS (रिप्स के तहत सब्सिडी क्या है)?
Under RIPS 2024, enterprises can claim interest subsidy on loans, SGST reimbursement, and exemptions in duties and charges. The exact subsidy depends on the type of unit, location, and investment made.
