Aatmanirbhar Gujarat Scheme for assistance to MSMEs: Assistance for Interest Subsidy to Micro, Small and Medium Enterprise (Service Sector)

DETAILS The "Aatmanirbhar Gujarat Scheme for MSMEs" is an umbrella scheme launched by the Industries and Mines Department, Gujarat. It aims to empower the state's dynamic MSME sector, which significantly contributes to employment, GDP, and exports. Effective from October 5, 2022, to October 4, 2027, this initiative supports growth, investments, and the vision of "Aatmanirbhar Gujarat" and "Aatmanirbhar Bharat." The component "Assistance for Interest Subsidy to Micro, Small and Medium Enterprise (Service Sector)" provides an interest subsidy on the term loan to support micro-enterprises in the service sector. BENEFITS Category of Taluka Quantum of Incentive Category 1 7% on Term Loan with a maximum amount of ₹35,00,000/- per annum for a period of 7 years Category 2 6% on Term Loan with a maximum amount of ₹30,00,000/- per annum for a period of 6 years Category 3 & Municipal Corporation Areas 5% on Term Loan with a maximum amount of ₹25,00,000/- per annum for a period of 5 years ELIGIBILITY The firm must be a Micro/Small/Medium enterprise in the service sector. The enterprise must have obtained acknowledgment or registration from the Ministry of MSME or the Department for Promotion of Industry and Internal Trade (DPIIT), as applicable. Only new MSME of Service sectors will be eligible for Interest subsidy on the term loan on new machinery, equipment, and furniture/fixtures (except land and building). The enterprise must submit an application online within one year of the first loan disbursement, commencement of commercial production/services, or GR issue date, whichever is later. Applications must be submitted before the scheme's last operative date. The enterprise must pay regular installments and interest to the bank/financial institution. Exclusions Enterprises that have availed incentives for the same GFCI under any other state government scheme or agency are ineligible unless specifically allowed. Enterprises with term loans sanctioned more than one year after starting commercial production/services are ineligible. Enterprises defaulting on loan repayments will not receive interest subsidies for the default period. Enterprises seeking reimbursement for penal interest or other charges are ineligible for such claims.