Aatmanirbhar Gujarat Scheme for assistance to MSMEs: Assistance for Interest Subsidy to Micro, Small and Medium Enterprise (Service Sector)
6–7% interest subsidy up to ₹35L/year · MSME service sector · Gujarat 7 years
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 |
💡 Why Startups Should Care
For a Gujarat service-sector MSME with a ₹1 crore term loan, a 7% interest subsidy means up to ₹7 lakh back per year for 7 years — effectively ₹49 lakh over the scheme period. This is a reimbursement scheme, so you'll pay interest first and claim it back, but the cash inflow is significant for growing businesses.
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
- Available only to registered MSMEs in the service sector
- Incentive amount and duration vary by taluka category (Category 1: 7% for 7 years; Category 2: 6% for 6 years; Category 3 & Municipal Areas: lower rates)
How to Apply
- Visit ifp.gujarat.gov.in/DIGIGOV/ and click "New Investor Registration".
- Complete the registration and log in to the Investor Facilitation Portal (IFP).
- Select the Aatmanirbhar Gujarat MSME scheme — Interest Subsidy (Service Sector).
- Fill in enterprise details, investment details, and banking information.
- Upload the application form (signed and stamped), Udyam/IEM/LOI certificate, and other required documents.
- Submit the application and note your Reference Number.
- The incentive is processed on a reimbursement basis after verification.
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 application form with declaration signed by authorised person (with designation and stamp)
- Udyam registration / IEM / LOI certificate
- CA certificate for fixed capital investment
- Copy of term loan sanction letter
- Bank statement / loan repayment schedule
- Constitution of enterprise (MOA, partnership deed, etc.)
- PAN card of enterprise and promoters