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 for manufacturing MSMEs gives 5-7% on term loans, with benefits 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
The Industries and Mines Department, Gujarat, runs an umbrella programme titled the Scheme for Assistance to Micro, Small and Medium Enterprises (MSME). It remains in force from 7 August 2020 to 6 August 2025. The scheme targets the state's MSME sector, which contributes to employment generation, GDP growth and export revenues, with the aim of strengthening entrepreneurs and improving the global competitiveness of these enterprises.
One component under the scheme, Assistance for Interest Subsidy (Manufacturing Sector), tackles the financial load carried by manufacturing enterprises. It extends an interest subsidy on term loans, which lowers operational costs and encourages investment in the sector. Both the subsidy rate and its duration are tiered according to the geographical classification of the taluka in which the enterprise is situated.
The scheme also sets aside additional benefits for underserved entrepreneurial groups: differently-abled entrepreneurs, women entrepreneurs, registered startups, and young entrepreneurs below 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 applicant must be a Micro, Small, or Medium enterprise. - The enterprise's operations must fall under the manufacturing sector. - The term loan must be sanctioned by a recognised Bank or Financial Institution; NBFCs are not eligible. - The application must be filed either within one year of loan disbursement or before commercial production begins. - The enterprise must continue operations for a minimum of 7 years after the subsidy is approved. - The enterprise must comply with all pollution control measures. - Subsidy is available for only one investment type: Forward Integration, Backward Integration, Diversification, or Expansion.
How to apply
**Registration Process:**
- Step 1: Go to the Investor Facilitation Portal (IFP) at https://ifp.gujarat.gov.in/DIGIGOV/. Select "New Investor Registration" to open the registration form. - Step 2: Complete every mandatory field in the Registration Form. Make sure the information entered is correct and nothing is left out. When finished, select "Submit". - Step 3: Activate your account by confirming your E-mail ID — open the link delivered to the E-mail ID you registered with. This step is essential. - Step 4: Once the email verification succeeds, your registration stands completed and a confirmation will reach you.
**Post-Registration Process:**
- Step 1: Go back to the Investor Facilitation Portal (IFP) at https://ifp.gujarat.gov.in/DIGIGOV/. Select "Login" to continue. - Step 2: Provide the email address and password you had set during the initial registration in order to reach your account. - Step 3: Select the "Login" button. You will then be taken to your application dashboard. - Step 4: From within your account, supply all the required particulars about your business and upload the mandatory supporting documents so that your interest subsidy application is finalised. This will likely cover details of your manufacturing unit, the sanctioned term loan, and other relevant certifications. Once submitted, the department will review your application.
How applications are assessed
The Industries and Mines Department, Gujarat, screens each interest subsidy application received through the Investor Facilitation Portal. Assessment covers MSME status, whether the unit falls within the manufacturing sector, the term loan particulars, and compliance with operational and pollution control requirements.
Submitted documents are then verified against the scheme's guidelines. Approval follows only after every criterion has been checked and found to be satisfied.
Frequently asked questions
What is the primary benefit of the Assistance for Interest Subsidy scheme?
Manufacturing MSMEs can receive an interest subsidy of 5-7% on term loans, worth up to ₹35 lakh per annum, which lowers their cost of financing for business growth and operations.
Who is eligible to apply for this subsidy?
Manufacturing MSMEs in Gujarat can apply, 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, annual ceiling and duration vary according to the taluka category in which the enterprise operates, with Category I talukas attracting the highest benefits and Category III talukas and Municipal Corporation areas receiving a somewhat lower subsidy.
Are there any additional benefits for specific types of entrepreneurs?
Differently-abled entrepreneurs, women entrepreneurs, registered startups, and entrepreneurs under 35 years of age can access additional benefits, which are intended to widen participation in manufacturing.
What is the application process for the interest subsidy?
Applications are submitted online via Gujarat's Investor Facilitation Portal (IFP): register with email verification, then log in to file your business details and required documents.
What documents are typically required for the application?
Although the scheme does not publish a fixed list, applicants generally need their Udyam Registration Certificate, the bank's term loan sanction letter, a project report, proof of the date commercial production began, pollution control compliance certificates, and identity and address proofs for the proprietors or directors. The online portal sets out the exact documents required at the time of submission.
Sectors
- Manufacturing Industrial
- Msme
- Manufacturing
- Subsidy
- Gujarat
Details last verified on 18 September 2026. Source: the issuer's published information.