Banglashree for Micro, Small and Medium Enterprises: Interest Subsidy on Term Loan (IS)

The Interest Subsidy on Term Loan (IS) operates as a sub-scheme within the Banglashree for Micro, Small and Medium Enterprises initiative. The Department of Micro, Small and Medium Enterprises and Textiles, Government of West Bengal, launched this programme, which runs from April 1, 2020, to March 31, 2025.

The parent Banglashree scheme provides fiscal incentives to entrepreneurs setting up new MSMEs. Its aim is balanced industrial development across West Bengal, efficient resource use, and the creation of employment opportunities.

Under the IS sub-scheme, eligible MSMEs receive a direct subsidy on their annual interest obligation. This applies to term loans from Commercial Banks, Cooperative Banks, RBI-approved Scheduled Banks, Regional Rural Banks (RRBs), and Central or State Financial Institutions. The reduced interest burden improves project viability and operational efficiency, supporting the scheme's objectives of economic growth and job creation in manufacturing.

1. **User Registration:** Go to the Shilpasathi Portal (silpasathi.wb.gov.in) and select ‘Apply Online’. For first-time users, choose ‘Create New’. Specify your Applicant Type (Industry/Business/Commercial/Charitable Society/Govt. entity) and provide your Registration Number. Complete all required fields on the ‘User Registration’ page and select ‘Register’. 2. **Login and Access Services:** Return to the Shilpasathi Portal, click ‘Apply Online’, and sign in with your username and password or through OTP. This will take you to your user dashboard. 3. **Initiate Application:** On the dashboard, choose ‘ALL SERVICES’ and pick 'MSME Incentive' from the options. Click ‘Create CAF’ to generate your Common Application Form (CAF) ID, then select ‘Apply Online’ to continue. 4. **Fill Eligibility and CAF:** Complete the "eligibility form" and save it; you will then be redirected to the common application form (CAF). Fill in every mandatory field in the CAF, confirm that all details are correct, and click “Update and Continue” to review the form. 5. **Review and Save Application:** After the initial CAF submission, you will be redirected to the “Dashboard” to check the application status. Click “Click to Proceed” to resume work on your application, saving any changes periodically. 6. **Complete Online Form - A:** Select "Preview" to do a final review of the CAF before submission. Then, click "Go to Application" to complete the "Online Form - A", which pertains specifically to the subsidy request. 7. **Provide Subsidy Details:** Go to the "APPLY SUBSIDY" section to examine year-wise subsidy items for the application. When finished, click "SAVE". Next, move to the "FILL UP SUBSIDY" tab to enter detailed year-wise subsidy information, using "Add More" for multiple-year or year-wise breakups. 8. **Upload Documents and Final Submission:** Upload all necessary documents. Review all entered details and uploaded files carefully. Click “VERIFY & SUBMIT”, tick the declaration box, and then click “Submit Application”. 9. **Receive Reference Number:** After Form-A is submitted, you will be issued an application reference number. Keep this number to monitor the application’s progress on the portal.

Applications under the Interest Subsidy on Term Loan scheme are handled via the Shilpasathi Portal. The assessment begins with a detailed check of the applicant’s eligibility, using the information and attachments provided. A review committee or designated agency from the Department of MSME and Textiles, Government of West Bengal, then examines whether the enterprise satisfies all conditions, such as its MSME registration, engagement in manufacturing, the date commercial production began, and the term loan’s legitimacy from an approved financial institution. Those whose submissions match the scheme’s requirements receive approval for the subsidy.