Interest Subsidy

Service Enterprise

 

1 Name of the Scheme
Scheme for financial assistance by way of Interest Subsidy and Credit linked Interest Subsidy to Micro, Small and Medium Service Enterprises.
2 Operative Period
From 01/01/2015 to 31/12/2019
3 Who will be eligible?
  • The Enterprise registered as Service Enterprises under MSME Development act, 2006 with respective DIC as service enterprise.
  • For setting up new service enterprise during operative period of the scheme such enterprise has to start the service activity during the operative period.
4 Assistance Available
  Interest subsidy for Service Enterprise
  • Enterprise which has obtained first disbursement during the operative period of the scheme will eligible for the assistance.
  • Interest Subsidy will be reimbursed after payment to the Bank/Institution
  • New MSME Service Sector having investment in machinery and equipments more than Rs.5 lakhs as listed in annexure -1 of the GR will be eligible for Interest subsidy @ 5% of term loan for Machinery & Equipment with Maximum limit of Rs.25 lakhs per annum, for period of 5 years.
  • 1% additional interest subsidy, if enterprise is set up with required equity contribution for the project @100% by youth/s having age less than 35 years as on the date of sanction of the term loan.
  • 1% additional interest subsidy, if enterprise is set up by with required equity contribution for the project @100% by SC/ST/Physically Challenged and Woman Entrepreneurs.
  • Maximum quantum of interest subsidy shall not exceed 7%.
  • The assistance will be available to enterprise set up any where in the State with permission from appropriate local authority.
5 Conditions for the Interest subsidy to Service Enterprise
  • Enterprise shall have option for date of availment of interest subsidy either from the date of first disbursement of the loan or from the date of first service bill of the service activity. This opted date will be final and period of 5 year will start from that date
  • First service bill will be considered as the date of commencement of service activity.
  • The interest subsidy will be reimbursed to the enterprise who pays regular installments and interest there of to the financial institution. If the enterprise becomes defaulter for any period, it will not be eligible for reimbursement of interest subsidy for that default period.
  • In case term loan is sanctioned after one year from the date of first service bill of the service activity, such enterprise will not eligible for Interest subsidy under the scheme.
  • The enterprise has to apply to concerned DIC in prescribed format with documents as specified in check list.
  • The application should be submitted within one year from the date of first disbursement of term loan or from the date of first bill of the service activity whichever is later.
  • Interest Subsidy will be reimbursed only after the commencement of service activity.
  • For the purpose of assistance under this resolution, the investment made in Gujarat shall be clubbed to decide the status of MSME.
  • The enterprise shall have to file information about annual production, sales, power consumptions and such other details as may be called for by DIC (for each year ended on 31st March regularly).
  • The enterprise will have to employ at least 85% of the total employment and 60% of supervisory and managerial employment from local persons.
  • The enterprise has to give undertaking on his letter head singed by authorized signature to confirm that all Government dues are paid as on date
  • Enterprise will have to observe pollution control measures as prescribe by GPCB or other competent authority.
  • Service enterprise will not eligible for interest subsidy for any Expansion / Diversification / Modernization.