Interest Subvention Scheme
Posted on : 17 Dec 2019Views: 188
- Micro, Small and Medium Enterprises (MSME) Minister has approved the changes in the Interest Subvention Scheme guidelines for MSMEs.
- The modifications are expected to boost their productivity through access to credit at reduced cost.
- The modifications to the scheme include settlement of claims based on internal or concurrent auditor certificate and submission of statutory auditor's certificate once by June, 2020.
- Requirement of Udyog Aadhar Number, UAN is dispensed with for units eligible for GST.
- Trading activities without UAN have been made eligible.
About Interest Subvention Scheme for MSMEs:
- The Ministry of Micro, Small and Medium Enterprises (MSME), Government of India, on November 2, 2018, has announced "Interest Subvention Scheme for MSMEs".
- Small Industries Development Bank of India (SIDBI) is the single national level nodal implementation agency for the scheme.
- MSMEs who meet the following criteria shall be eligible as beneficiaries under the Scheme:
- Valid Udyog Aadhar Number [UAN]
- Valid GSTN Number
- The interest relief will be calculated at two percentage points per annum (2% p.a.), on outstanding balance from time to time from the date of disbursal / drawal or the date of notification of this scheme, whichever is later, on the incremental or fresh amount of working capital sanctioned or incremental or new term loan disbursed by eligible institutions.
Article Related Questions
Consider the following statements regarding Interest Subvention Scheme for MSMEs
1.SIDBI is the single national level nodal implementation agency for the scheme.
2.Now, Trading activities without UAN have been made eligible.
Which of the following statement is/are correct?
3.Both 1 and 2
4.Neither 1 nor 2
Right Ans : Both 1 and 2