Scheme for Assistance to Micro, Small and Medium Enterprises (MSME): Assistance for Reimbursement of CGTMSE Fees
Gujarat-based Micro, Small, and Medium Enterprises (MSMEs) that have taken a collateral-free term loan under the CGTMSE scheme can get their annual service fees reimbursed by the Gujarat government for up to 5 years. The scheme covers 100% of the CGTMSE annual service fees charged by banks, helping reduce the effective cost of credit for small businesses. Apply online through the Investor Facilitation Portal (ifp.gujarat.gov.in) within one year of the first loan disbursement.
About This Scheme
Gujarat-based Micro, Small, and Medium Enterprises (MSMEs) that have taken a collateral-free term loan under the CGTMSE scheme can get their annual service fees reimbursed by the Gujarat government for up to 5 years. The scheme covers 100% of the CGTMSE annual service fees charged by banks, helping reduce the effective cost of credit for small businesses. Apply online through the Investor Facilitation Portal (ifp.gujarat.gov.in) within one year of the first loan disbursement.
Full official description
The scheme "Scheme for Assistance to Micro, Small and Medium Enterprises (MSME)" 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 August 7th, 2020 to August 6th, 2025, this initiative supports entrepreneurs and strengthens MSMEs, making them globally competitive. The component "Assistance for Reimbursement of CGTMSE Fees" provides financial assistance for the implementation of Information and Communication Technology (ICT) infrastructure. The support covers equipment required for communication, networking, and cloud computing.
Benefits
- 100% reimbursement of annual CGTMSE service fees for up to 5 years
- Year 1 fee rate: 1.8% + risk premium; Year 2 onwards: 0.85% (or as amended by CGTMSE/RBI)
- Eligible for collateral-free loans sanctioned up to ₹2 crore
Who Can Apply (Eligibility)
- Must be a Micro, Small, or Medium enterprise (registered under MSME/Udyam)
- Must have availed a collateral-free term loan under the CGTMSE scheme from a recognized bank or financial institution
- Apply within one year from the date of first loan disbursement, or before commercial production starts — whichever is later
- Enterprises in service or trading activities are not eligible
Exclusions
- Enterprises engaged in service or trading activities are not eligible.
- Enterprises that have not availed of CGTMSE-backed loans are not eligible.
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 "Scheme for Assistance to Micro, Small and Medium Enterprises (MSME)"?
The "Scheme for Assistance to Micro, Small and Medium Enterprises (MSME)" aims to position Gujarat as a global business destination by promoting sustainable manufacturing, inclusive development, and balanced regional growth.
What is the duration of the scheme?
The scheme is effective from August 7, 2020, and will remain in operation until August 6, 2025.
What is the objective of the component "Assistance for Reimbursement of CGTMSE Fees"?
The component provides financial support to Micro and Small Enterprises (MSEs) by reimbursing the annual service fees charged on collateral-free loans availed under the CGTMSE scheme.
Who is eligible to apply for this reimbursement?
Any Micro or Small Enterprise (MSE) that has availed of a collateral-free term loan under CGTMSE and meets the application criteria is eligible to apply.
How much reimbursement can an entrepreneur receive?
An entrepreneur can receive a 100% reimbursement of the annual service fees paid to the bank or financial institution for up to five years.
What is the service fee structure for CGTMSE loans?
In the 1st year, the service fee is 1.8% + Risk Premium, and from the 2nd year onwards, it is 0.85% or as revised by CGTMSE or RBI.
How long is the reimbursement assistance available?
The reimbursement assistance is available for a maximum period of five years.
Are service-based businesses eligible for this reimbursement?
No, service and trading activities are not eligible for this scheme. Only manufacturing and production-based enterprises can apply.
Can an entrepreneur apply if they have taken a secured loan?
No, this scheme is only applicable to collateral-free term loans sanctioned under CGTMSE.
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.