Interest Subvention Scheme
Interest Subvention Scheme for Incremental Credit to MSMEs · Ministry of Finance / RBI
The Interest Subvention Scheme reduces your loan interest rate by 2% per annum on incremental working capital or term loans — directly credited to your loan account. For MSMEs with GST registration and Udyam Certificate, turnover up to ₹25 crore. Benefit up to ₹1.5 lakh per year.
📋 Eligibility Criteria
- Udyam-registered MSME (micro or small)
- GST registration mandatory
- Turnover up to ₹25 crore
- Account must be Standard (not NPA) throughout the period
- Applies to incremental credit — new loans or enhanced limits taken after scheme launch
📁 Documents Required
💡 Tip: Get our ₹499 PDF report for a bank-specific document checklist — some banks ask for additional docs not on this official list.
🚀 How to Apply
- 1
Ensure Udyam + GST registration is in place
- 2
Inform your bank that you want to avail Interest Subvention Scheme
- 3
Bank applies 2% subvention automatically on eligible loan accounts
- 4
Benefit reflected as credit in loan statement quarterly
❓ Interest Subvention Scheme FAQ
Interest Subvention Scheme ka faida kitna milega?
₹50L loan pe 2% = ₹1L per year savings in interest. Directly loan account mein credit hota hai every quarter. Zero paperwork on your side after initial registration.
Last verified: 2026-06-01 · Source: Ministry of Finance / RBI