Aatmanirbhar Gujarat Scheme for assistance to MSMEs: Assistance for Interest Subsidy to Micro, Small and Medium Enterprise (Service Sector)
Aatmanirbhar Gujarat Scheme provides interest subsidies on term loans to Micro, Small and Medium Enterprises (MSMEs) in Gujarat's service sector. Subsidy rate and maximum amount depend on the category of the taluka where the business is located.
About This Scheme
Aatmanirbhar Gujarat Scheme provides interest subsidies on term loans to Micro, Small and Medium Enterprises (MSMEs) in Gujarat's service sector. Subsidy rate and maximum amount depend on the category of the taluka where the business is located.
Full official description
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
Interest subsidy on term loans (service sector MSMEs):
| Taluka Category | Subsidy Rate | Max per year | Duration |
|---|---|---|---|
| Category 1 | 7% | ₹35,00,000 | 7 years |
| Category 2 | 6% | ₹30,00,000 | 6 years |
| Category 3 | 5% | ₹25,00,000 | 5 years |
Who Can Apply (Eligibility)
Micro, Small, or Medium enterprise in the service sector, registered with MSME/Udyam, operating in Gujarat. Enterprise must have commenced commercial operations after the scheme's commencement date.
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.
How to Apply
Registration Process:
Step 1: Visit the Investor Facilitation Portal (IFP) portal. Click on "New Investor Registration" to access the registration form.
Step 2: Fill in the Registration Form. Click on "Submit".
Step 3: Verify the E-mail ID using the link sent on your registered E-mail ID.
Step 4: After verification, you will be registered successfully.
Post-Registration Process:
Step 1: Visit the Investor Facilitation Portal (IFP) portal. Click on "Login".
Step 2: Enter the email address and password you used during registration.
Step 3: Click the "Login" button to access your account.
Step 4: Now fill in the required details and mandatory documents about your business to complete the application process.
Helpdesk: Contact Here.
Frequently Asked Questions
What is the "Aatmanirbhar Gujarat Scheme for Assistance to MSMEs"?
The "Aatmanirbhar Gujarat Scheme for Assistance to MSMEs" is a state initiative designed to support and strengthen the MSME sector in Gujarat. It aims to enhance growth, encourage investments, and contribute to the vision of self-reliant Gujarat and India.
When is the scheme operative?
The scheme is operative from October 5, 2022, to October 4, 2027, covering a period of five years.
What are the objectives of the scheme?
The scheme aims to boost MSME growth, enhance the industrial ecosystem, encourage investments, and contribute to Gujarat's and India's self-reliance vision.
What are some initiatives included in the scheme?
The scheme includes the establishment of new industrial estates, sector-specific parks, and infrastructure projects, along with amendments to the Gujarat Industrial Policy 2020 to further support MSME growth.
Who is eligible to benefit from the scheme?
MSMEs established and operating within Gujarat are eligible to benefit from the scheme, as per the criteria defined in the policy framework.
What is the incentive rate for enterprises in Category 1 areas?
Enterprises in Category 1 areas can receive 7% of the term loan amount, with a maximum of [?]35,00,000/- per annum, for a period of 7 years.
What is the incentive rate for enterprises in Category 2 areas?
Enterprises in Category 2 areas can receive 6% of the term loan amount, with a maximum of [?]30,00,000 per annum, for a period of 6 years.
What is the incentive rate for enterprises in Category 3 and municipal corporation areas?
Enterprises in Category 3 and municipal corporation areas can receive 5% of the term loan amount, with a maximum of [?]25,00,000/- per annum, for a period of 5 years.
What additional interest subsidy is available for differently-abled entrepreneurs, women entrepreneurs, and registered startups?
Differently-abled entrepreneurs, women entrepreneurs, and registered startups in the service sector are eligible for an additional 1% interest subsidy on their term loan.
Is there any additional interest subsidy for young entrepreneurs?
Yes, young entrepreneurs below the age of 35 years on the date of term loan sanction are eligible for an additional 1% interest subsidy.
What is the minimum interest that an eligible enterprise must bear?
Eligible enterprises must bear a minimum of 2% interest on the term loan levied by the bank or financial institution.
Can an enterprise avail both state and central government interest subsidies?
Yes, but the combined subsidies must ensure that the enterprise bears at least 2% of the interest after offsetting the interest subsidy from the Government of India.
What types of enterprises are eligible for this incentive?
Only service enterprises registered under the applicable Act are eligible for the interest subsidy.
Can startups apply for the additional interest subsidy?
Yes, registered startups in the service sector are eligible for an additional 1% interest subsidy on their term loan.
Are manufacturing enterprises eligible for this interest subsidy?
No, the interest subsidy is specifically for service enterprises registered under the applicable Act.
Ready to apply?
Visit the official government portal to apply for this scheme.
Apply on myScheme.gov.inDocuments Required
- Printed copy of the application along with declaration and undertaking in the application form signed by an authorized person, including their designation and name with the enterprise's stamp.
- Copy of acknowledgment of Udyog Aadhaar / Udyam Registration.
- Copy of term loan sanction letter.
- Copy of term loan account statement / bank certification of first disbursement certificate.
- Copy of the constitution of the enterprise (registered partnership deed for partnerships).
- Copy of DPR of the enterprise (for projects up to ₹5 crores); for projects above ₹5 crores, DIC will ask for a bank appraisal report.
- Shop & Establishment Certificate (for service sector enterprises in municipal corporations).
- Copy of GST registration (if applicable).
- Copy of PAN card of the enterprise.
- Copy of ITR for the last financial year showing plant & machinery value (new enterprises must submit a self-declaration for the first time).
- Copy of birth certificate/school leaving certificate (for entrepreneurs under 35 years as of the bank loan sanction date).
- Copy of caste certificate from a competent authority.
- Copy of certificate for differently abled persons from a competent authority.
- Copy of CTE issued by the GPCB (if applicable).
- Self-certified/certified copy of documents such as 7/12 Utara, Namuna 6, copy of index, property card, etc. (any one).
- NA permission (if applicable).
- Copy of notarized rent deed (agreement) with the owner's proof/affidavit for ownership of land/property.
- Copy of lease deed (agreement) with the owner's proof of ownership of land/property.
- Copy of the property tax receipt (for service activities).
- Board resolution for signing authority (in case of partnerships, LLPs, Pvt. Ltd., or Limited Companies).
- Declaration and undertaking regarding other investments in Gujarat.
- Annexure of the balance sheet showing the gross fixed capital investment of the previous financial year.
- CA certificate showing the gross fixed capital investment before initiating expansion/diversification/forward or backward integration.