INTEREST SUBVENTION SCHEME FOR MSMEs
All MSMEs who meet the following criteria shall be eligible as beneficiaries under the Scheme:
- Valid Udyog Aadhar Number [UAN]
- Valid GSTN Number
- MSME exporters availing interest subvention for pre-shipment or post-shipment credit under Department of Commerce will not be eligible for assistance under Interest Subvention Scheme for Incremental credit to MSMEs 2018.
- MSMEs already availing interest subvention under any of the Schemes of the State / Central Govt. will not be eligible under the proposed Scheme.
- The loan accounts on the date of filing claim should not have been declared as NPA as per extant guidelines in force. No interest subvention shall be admissible for any period during which the account remains NPA.
WHAT IS THE BENEFIT OF THIS SCHEME?
As part of access to credit for MSMEs, Prime Minister announced 2% interest subvention for all GST registered MSMEs, on Incremental term loan or fresh term loan or incremental or fresh working capital from 2nd November 2018 from time to time from the date of disbursal / drawal or the date of notification of this scheme, whichever is later.
Points to be noted:
- The term loan or working capital should have been extended by Scheduled Commercial Banks.
- In order to ensure maximum coverage and outreach, all working capital or term loan would be eligible for coverage to the extent of ₹100 lakh only during the period of the Scheme
- Wherever both the facilities working capital and term loan are extended to a MSME by an eligible institution, interest subvention would be made available for a maximum financial assistance of ₹100 lakh.
WHO WILL IMPLEMENT THIS SCHEME ?
- Small Industries Development Bank of India (SIDBI) is the single national level nodal implementation agency for the scheme.
- Disbursement against each claim to individual institution shall be only after release of funds from Ministry of Micro, Small & Medium Enterprises
HOW THE BANKS HAS TO SUBMIT THIS CLAIMS?
- Nodal office of eligible lending institutions should submit their half yearly claims to SIDBI as per the format given in Annex I.
- Information with respect to loans disbursed and interest relief claimed (branch-wise) shall be submitted in soft copy in excel in the format given in Annex II.
- Compilation of data by branches of eligible institutions is given in Annex III which will be submitted by Head office to SIDBI.
WHO HAS CERTIFY THE CLAIMS BEFORE SUBMISSION TO SIDBI ?
- All claims have to be duly certified by the statutory auditors of the eligible institutions.
- The certificate shall include statement on verification of individual accounts with regard to amount, incremental / fresh lending, interest charged and amount claimed.
- Other points
Lending institutions shall ensure that total relief claimed as indicated in Annex I, II and III are matched.
NOTIFICATION FOR BANKS BY RBI :
All scheduled commercial banks including Regional Rural Banks have been notified on 21st February 2019 in which they are requested to take appropriate action as envisaged for banks in the said operational guidelines and issue necessary instructions to your branches /controlling offices for successful implementation of interest subvention scheme.
Disclaimer:"The information contained herein is only for informational purpose and should not be considered for any particular instance or individual or entity. We have obtained information from publicly available sources, there can be no guarantee that such information is accurate as of the date it is received or it will continue to be accurate in future. No one should act on such information without obtaining professional advice after thorough examination of particular situation."