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SEPTEMBER - 2019
Interest Subvention Scheme for
Incremental Credit to MSMEs
It is now official. The Ministry of MSME incremental working capital and
has issued a circular regarding 2% lower term loan by an eligible institution,
interest payment for MSMEs under the interest subvention would be made
Interest Subvention Scheme for available only for a maximum
Incremental credit to MSMEs 2018, a gist financial assistance of Rs 100 lakh.
of which is given below, for the ready
reference of Members: Who is not Eligible?
It may be recalled that the Hon'ble Prime FMSME exporters availing interest
Minister in his outreach initiative for subvention for pre-shipment or
MSME sector last year, had announced a 2 post-shipment credit under
% interest subvention for all GST & UAM- Department of Commerce will not
registered MSMEs up to a maximum up to be eligible for assistance under
Rs. 1 crore, on fresh or incremental loans, Interest Subvention Scheme for
under the Interest Subvention Scheme for Incremental credit to MSMEs 2018.
Incremental credit to MSMEs 2018, being
implemented over 2018-19 and 2019-20 FMSMEs already availing interest
with an allocation of Rs 975 crore. subvention under any of the
Schemes of the State/Central Govt.
Eligibility for MSMEs will not be eligible under the
proposed Scheme.
Valid Udyog Aadhar Number [UAN]
F
Sri Srinivas Asranna, President, PIA
FValid GSTN Number requested all the eligible Members to
make use of the interest subvention
FIncremental term loan or fresh term and reduce their cost of finance, and
loan or incremental working capital also asked them to inform PIA of any
extended during the current FY viz. instances where the Banks, financial
from Nov 2, 2018 and next FY would institutions were not passing on the
be eligible for coverage. benefit of interest subvention, so that
these cases will be taken by PIA for due
FThe term loan or working capital redressal.
extended by Scheduled Commercial
Banks and RBI registered The Scheme aims at encouraging both
systemically important Non- manufacturing and service enterprises to
Banking Finance Companies increase productivity.
[NBFCs].
SIDBI shall act as a Nodal Agency only for
FIn order to ensure maximum the purpose of channelizing of interest
coverage and outreach, all eligible subvention to the various lending
working capital or term loan would institutions through their Nodal office.
be eligible for coverage to the extent
of Rs 100 lakh only during the F o r m o r e d e t a i l s v i s i t :
period of the Scheme. http://dcmsme.gov.in/Notification_of_Inte
rest_subvention_Scheme_2018.pdf.
FWherever for a single MSME both
the facilities are extended viz.
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