Scheme for Assistance to Micro, Small and Medium Enterprises (MSME): Assistance for Interest Subsidy (Manufacturing Sector)
Industries and Mines Department, Government of Gujarat · Central government
Gujarat’s interest subsidy scheme funds manufacturing MSMEs on term loans, offering 5-7% subsidy varying by taluka category.
Open, rolling. Applications are accepted continuously — there is no deadline.
Key facts
- Subsidy amount
- ₹25,00,000 – ₹35,00,000
- Instrument
- Subsidy
- Deadline
- Rolling
- Disbursement
- Reimbursed after spend
About this scheme
## Scheme for Assistance to Micro, Small and Medium Enterprises (MSME)
The Industries and Mines Department, Gujarat, runs an umbrella initiative titled "Scheme for Assistance to Micro, Small and Medium Enterprises (MSME)". It is valid from August 7th, 2020, to August 6th, 2025. The programme targets the state's MSME sector, which contributes to employment, GDP, and export earnings. Its objective is to strengthen enterprises and improve their international competitiveness.
Under this umbrella, the "Assistance for Interest Subsidy (Manufacturing Sector)" component provides an interest subsidy on term loans for manufacturing units. This reduces operational costs and supports capital investment. The subsidy rate and its tenure depend on the taluka's geographical classification. Additional support is extended to differently-abled entrepreneurs, women entrepreneurs, registered startups, and entrepreneurs under 35 years of age.
Who can apply
- Eligible business forms
- Private limited company, Limited liability partnership, One person company, Partnership firm, Sole proprietorship
- Udyam registration
- Not specified
- MSME registration
- Required
- DPIIT startup recognition
- Not specified
- GST registration
- Not specified
- Where the business may be based
- Gujarat
- The firm must be a Micro, Small, or Medium enterprise. - The enterprise must operate within the manufacturing sector. - The term loan must be sanctioned by a recognised Bank or Financial Institution (excluding NBFCs). - Applications must be submitted within one year of loan disbursement or before commercial production starts. - The enterprise must remain operational for at least 7 years post-subsidy approval. - The enterprise must adhere to all pollution control measures. - Only one type of investment (Forward Integration, Backward Integration, Diversification, or Expansion) is eligible for subsidy.
How to apply
**Registration Process:** 1. Go to the Investor Facilitation Portal (IFP) at https://ifp.gujarat.gov.in/DIGIGOV/. Select "New Investor Registration" to open the registration form. 2. Complete every field in the Registration Form. Confirm that the details provided are correct and complete, then press "Submit". 3. Activate your account by clicking the verification link sent to your registered E-mail ID. 4. Once the email is verified, your registration is finished and a confirmation notice will be issued.
**Post-Registration Process:** 1. Return to the Investor Facilitation Portal (IFP) at https://ifp.gujarat.gov.in/DIGIGOV/ and choose "Login". 2. Provide the email address and password set during registration to enter your account. 3. Press the "Login" button to reach your application dashboard. 4. In the dashboard, supply all necessary information about your enterprise and attach the required supporting documents to complete the interest subsidy application. This typically covers particulars of the manufacturing unit, the sanctioned term loan, and relevant certificates. Once submitted, the department will assess your application.
How applications are assessed
The Industries and Mines Department, Gujarat, evaluates applications submitted via the Investor Facilitation Portal. Checks cover MSME status, engagement in manufacturing, term loan particulars, and conformity with operational and pollution control requirements. Submitted documents are verified against the scheme’s provisions, and approval follows once all conditions are satisfied.
Frequently asked questions
What is the primary benefit of the Assistance for Interest Subsidy scheme?
The main benefit is an interest subsidy of 5–7% on term loans for manufacturing MSMEs, which can reduce financing costs by up to ₹35 lakh per year. This lowers the overall expense of borrowing for business growth and operations.
Who is eligible to apply for this subsidy?
Manufacturing MSMEs in Gujarat qualify, provided the term loan comes from a recognised bank or financial institution and the application is submitted within one year of disbursement or before commercial production begins.
How does the subsidy amount vary?
The subsidy percentage, maximum annual amount, and duration vary by taluka category, with Category I talukas receiving the highest benefits. Category III and Municipal Corporation areas receive a slightly lower subsidy.
Are there any additional benefits for specific types of entrepreneurs?
Yes, additional benefits are available for differently-abled entrepreneurs, women entrepreneurs, registered startups, and young entrepreneurs below 35 years, encouraging diverse participation in the manufacturing sector.
What is the application process for the interest subsidy?
The application is completed entirely online via Gujarat's Investor Facilitation Portal (IFP), beginning with registration and email verification, then logging in to submit business details and required documents.
What documents are typically required for the application?
Applicants should typically prepare their MSME Udyam Registration Certificate, term loan sanction letter, project report, details of commercial production commencement, pollution control compliance certificates, and identity/address proofs of proprietors or directors. The online portal will specify the exact list of documents required during submission.
Sectors
- Manufacturing Industrial
- Msme
- Manufacturing
- Subsidy
- Gujarat
Details last verified on 3 August 2026. Source: the issuer's published information.