Scheme for Interest Subvention on Term Loan and Working Capital Loan

The scheme has been introduced to assist the MSME units which were badly affected due to the economic crisis in the wake of COVID-19 pandemic. The scheme intends to give financial assistance in the form of interest subvention for 12 months for the new/ additional term loan and/or working capital loan availed by the units from 1st April 2019 to 31st December 2021.

Eligibility for applicant units

• Should be an MSME in the manufacturing or job work category established in the state.
• Should have filed Udyam with the competent authority, after commencing the commercial production. .
• The unit should have been operational at least for a period of 3 months within a period of 6 months prior to the date of sanction of bank loan. .

Benefit under the scheme

• The total assistance under the scheme shall be limited to an amount of Rs.1,20,000/- per applicant unit including assistance for term loan and/ or working capital loan and it can be availed only once.
• All MSMEs in the manufacturing/ job work category functioning in Kerala will be eligible to avail interest subvention on fresh/ additional working capital loan up to a maximum of Rs.60,000/- per unit.
• All MSMEs in the manufacturing/ job work category functioning in Kerala will be eligible to avail interest subvention on fresh/ additional term loan up to a maximum of Rs.60,000/- per unit.
• The assistance shall be limited to 50% of the interest paid by the unit to the bank/ financial institution, up to a period of 12 months from the date of disbursement of 1st installment to the loan.
• The period of availing of fresh/ additional term loan and/ or working capital loan should be in between 01.04.2019 to 31.12.2021.
• The assistance shall be released to the loan account of the applicant unit through the financial institution concerned on quarterly reimbursement basis.

How to apply

Application can be submitted online or in person to the Assistant District Industries Officer, Taluk Industries Office concerned with all supporting documents.

Scheme Related GO's

• G.O.(RT)No.1200/2021/ID dated 30.10.2021
• G.O.(RT)No.362/2020/ID dated 02.06.2020
• G.O.(Ms)No.56/2020/ID dated 20.05.2020

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