Interest Subvention Scheme
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Interest Subvention Scheme for Incremental Credit To MSMEs 2018

The Micro, Small and Medium Enterprises [MSME] sector is a significant contributor to the economy. Hon’ble Prime Minister while launching outreach initiative for MSME sector on November 2nd, 2018 highlighted that access to credit, access to market, technology up gradation, ease of doing business and a sense of security for employees are five key aspects for facilitating MSME sector. Twelve announcements have been made to address each of these five categories. As part of access to credit, Prime Minister announced 2% interest subvention for all GST registered MSMEs, on fresh or incremental loans. 

Ministry of MSME (MoMSME) has decided that a new scheme viz. “Interest Subvention Scheme for Incremental credit to MSMEs 2018” will be implemented over 2018-19 and 2019-20.

For eligibility & other queries, pl refer FAQ’s.

Click here to view the affidavit

    Frequently Asked Questions


    What is Interest Subvention scheme & who all are covered for this benefit?

    Interest Subvention scheme is offered by GOI to Micro, Small & Medium enterprise (MSME’s) 2018

    Scheme Period – Validity of Scheme?

    Any incremental credit availed from 2nd November 2018 onwards will be eligible for this ISS benefit. Validity of this scheme is up till 31st March 2020.

    Eligibility criteria & Maximum eligible limit.

    • Account should be standard & not declared as NPA during the benefit scheme period.
    • Eligible Limit of Financial Assistance: Working capital or Term loan would be eligible for coverage to the extent of 100Lacs only during the period of the scheme.
    • The interest relief will be calculated at two percentage points per annum (2% p.a.), on outstanding balance from time to time from the date of disbursal / drawal or the date of notification of this scheme, whichever is later, on the incremental or fresh amount of working capital sanctioned or incremental or new term loan disbursed.
    • Benefit is subject to funds release by GOI 

    Documents required for the claim,

    • Affidavit cum declaration (On Stamp Paper applicable as per state stamp act) stating that borrower is not claiming Interest Subvention under any other schemes of State / Central Govt & is not claiming this scheme from multiple banks. Format is provided in link below.
    • Mandatory to mention CRN (Customer Relationship number) and RMN (Registered Mobile Number) on above Affidavit & all related documents. Any Affidavit without CRN & Registered Mobile number will not be considered for claim.
    • Know your CRN –): - SMS "CRN" to "9971056767 or 5676788" from your registered mobile number with the bank. Your CRN will be sent to you instantly.
    • Signature Proof (PAN Or DL Or Passport Or Verification from Banker)
    • GST Number – (If applicable)
    • UAN (Udyog Aadhar Number) – (If available)

    Last Date of Document Submission

    • For Claim Period April19 – Sep19 – Documents to be submitted till 15th Jan 20
    • For Claim Period Oct19 – Mar19 – Documents to be submitted till 30th April 20

    Where to send Documents?

    • Original documents to be sent at below address,

    Kavita Khavare / Pravin Katpara (CV & CE – Division)

    Subject: For Interest Subvention Scheme Nov’ 2018

    Kotak Infiniti, 4th Floor, Zone 2, Building No. 21, Infinity Park, Off Western Express Highway, General AK Vaidya Marg, Malad (E) –Mumbai - 400097

    For any further clarification or details you can call our Customer service Team at Toll Free number 1800 209 5600 from Mon – Sat between 9:30 a.m. to 6:30 p.m.