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

## Interest Subsidy on Term Loan (IS)

The Interest Subsidy on Term Loan (IS) is a sub-scheme of Banglashree for Micro, Small and Medium Enterprises, introduced by the Department of Micro, Small and Medium Enterprises and Textiles, Government of West Bengal. It remains in operation from April 1, 2020 to March 31, 2025, and applies to MSMEs throughout the state.

Banglashree as a whole provides fiscal incentives to entrepreneurs setting up new Micro, Small and Medium Enterprises. Its stated aim is balanced MSME development across West Bengal, supporting an ecosystem that uses resources efficiently, creates employment, and widens the state's industrial base.

Under the IS sub-scheme, eligible MSMEs receive a financial incentive against their annual interest liability. The support covers term loans taken from Commercial Banks, Cooperative Banks, RBI-approved Scheduled Banks, Regional Rural Banks (RRBs), and Central or State Financial Institutions. The scheme is intended to improve the financial viability and operational efficiency of approved projects, contributing to economic growth and job creation in the manufacturing sector.

- **Step 1: Register as a user:** Go to the Shilpasathi Portal (silpasathi.wb.gov.in) and select 'Apply Online'. If you are registering for the first time, select 'Create New'. Choose your Applicant Type (Industry/Business/Commercial/Charitable Society/Govt. entity), provide your Registration Number, complete every mandatory field on the 'User Registration' page, and select 'Register'. - **Step 2: Log in and reach the services:** Go back to the Shilpasathi Portal, select 'Apply Online', and sign in with your username and password or through OTP. Your user dashboard will open. - **Step 3: Begin the application:** On the dashboard, select 'ALL SERVICES' and choose 'MSME Incentive' from the list. Select 'Create CAF' to generate your Common Application Form (CAF) ID, then select 'Apply Online' to move ahead. - **Step 4: Complete the eligibility form and CAF:** Fill in the "eligibility form" and save it; you will then be redirected to the common application form (CAF). Enter every mandatory field in the CAF, confirm that all details are accurate, and select "Update and Continue" to review the form. - **Step 5: Review and save your application:** Once the CAF has been submitted initially, you will land on the "Dashboard", where the application status is displayed. Select "Click to Proceed" to resume work on the application, saving your updated information at regular intervals. - **Step 6: Fill Online Form - A:** Select "Preview" to check the CAF one final time before submitting. Then select "Go to Application" to complete the "Online Form - A", which relates specifically to the subsidy request. - **Step 7: Enter subsidy details:** Go to the "APPLY SUBSIDY" section and review the year-wise subsidy items for that application. When finished, select "SAVE". Next, open the "FILL UP SUBSIDY" tab to enter detailed year-wise subsidy information, using "Add More" where multiple years or year-wise breakups are involved. - **Step 8: Upload documents and submit:** Upload every required document. Carefully preview all the details you have entered and the documents you have uploaded. Select "VERIFY & SUBMIT", tick the declaration box, and then select "Submit Application". - **Step 9: Note your reference number:** After Form-A is finally submitted, an application reference number will be issued to you. Keep this number safe so you can track your application's status on the portal.

Applications are submitted via the Shilpasathi Portal. Eligibility is then verified in detail against the application and the documents filed with it. A committee or review panel constituted by the Department of MSME and Textiles, Government of West Bengal — or an agency it appoints — examines whether the enterprise satisfies every criterion, covering MSME status, manufacturing sector focus, date of commercial production, and whether the term loan comes from an approved financial institution and remains valid.

Applicants whose particulars are found to conform to the scheme's guidelines are approved for the interest subsidy.