The Interest Subvention Scheme covers loans and working capital of upto Rs. 100 Lakhs. However, loan accounts with a ‘Non-Performing Asset’ status on the day of application for the claim will not be eligible under this scheme. The interest subvention cannot be availed during the period in which the account is a Non-Performing Asset or NPA. If an enterprise has outstanding loan repayments, it may be considered as NPA.
Start-ups are not covered under the government’s definition of MSMEs. However, start-ups belonging to or operating in manufacturing and service sectors can register themselves as an MSME. They would need to register on the Udyog Aadhar Portal. By registering as an MSME, start-ups can avail tax exemptions, credit access, and other benefits under the Atmanirbhar Bharat Abhiyan.
Extension of the Interest Subvention Scheme has brought on a wave of relief for MSMEs who have persevered through the market swings and business roadblocks. Mobility restrictions have affected logistics chains, so the effect was observed across value chains including manufacturing, distribution and service. A reduction in the interest rates means that institutions have more capital left with them to invest in their business plans. Including co-operative banks as lenders impacts the accessibility of MSMEs to viable loans.
At Finserv MARKETS, you can avail MSME business loans to expand your business operations. Applying and getting approval for a business loan with Finserv MARKETS takes only 3 minutes. With zero collateral requirements, long repayment tenure and an ample loan limit, your enterprise can get the support it deserves through Finserv MARKETS.
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