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Aditya Birla Finance Limited

How can you avail the Interest Subvention Scheme?

Here’s everything you need to know about it.

About the Scheme

The Ministry of Micro, Small and Medium Enterprises (MSME), Government of India, on November 2, 2018, had announced an "Interest Subvention Scheme for MSMEs", the nodal agency of implementation for which is the Small Industries Development Bank of India (SIDBI).

This Scheme aims at encouraging manufacturing, service and trading enterprises to increase productivity by providing incentives to MSMEs for onboarding on GST platform, by reducing the cost of credit.

According to the scheme, 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 or on the incremental or fresh amount of working capital sanctioned or on incremental or new term loan disbursed by ABFL during the eligible period.

Eligibility for coverage under this scheme

MSMEs who meet the following criteria shall be eligible as beneficiaries under the Scheme:
Those with a Valid GSTN Number
Those with a Valid PAN No. (If GST is not applicable)

1.

Incremental term loan or fresh term loan or incremental or fresh working capital which has been extended during the period - 1st October, 2019 to 31st March, 2020, would be eligible for coverage.

2.

The term loan or working capital should have been extended by Aditya Birla Finance Limited.

3.

In order to ensure maximum coverage and outreach, all working capital or term loan would be eligible for coverage to the extent of Rs.100 lakh disbursed only during the period of the Scheme.

4.

Wherever both the facilities - working capital and term loan are extended to a MSME by ABFL, interest subvention would be made available for a maximum financial assistance of Rs.100 lakh.

5.

MSME exporters availing interest subvention for pre-shipment or post-shipment credit under Department of Commerce will not be eligible for assistance under Interest Subvention Scheme for Incremental credit to MSMEs 2018.

6.

MSMEs already availing interest subvention under any of the Schemes of the State / Central Govt. will not be eligible under the proposed Scheme.

Note:

The loan accounts on the date of filing claim should not have been declared as NPA as per extant guidelines in force. No interest subvention shall be admissible for any period during which the account remains NPA.

Interest Subvention Scheme for MSME’s (“Scheme”)

AFFIDAVIT CUM SELF DECLARATION

I/We, as per Interest Subvention scheme for MSMEs 2018 announced by Government of India, hereby agree and declare to ABFL that;

1.

I/We are an eligible MSME to be covered under the aforementioned scheme.

2.

I/We hold a Valid Udyog Aadhaar Number (UAN) (Not required for units eligible for GST).

3.

I/We hold a Valid GSTN Number.

4.

I/We are not an Exporter MSME availing interest subvention for pre-shipment or post-shipment credit under Department of Commerce.

5.

I/We have not availed interest subvention under any of the schemes of the State/Central Government.

6.

I / We wish to avail the following benefit towards the amount received under interest subvention:

I / We wish to continue and hereby agree to make the payment of interest as per the rate as agreed under the Sanctioned terms and authorize Aditya Birla Finance Limited to claim Interest Subsidy on our behalf and appropriate the same into our account whenever available.

7.

I/ We confirm the following details:

a.

b. Physically Challenged:

C. Minority:

If Yes :

I understand and accept that if at any stage, it is found that the information given by me is false/not true, all benefits given to me under the scheme would be withdrawn and legal action as deemed fit, would be taken against me.

Terms & Conditions:

1.

ABFL Internal Credit & Risk team retains authority of granting/rejecting the interest subvention claim based on documents and data provided by customer.

2.

The interest subvention claim is for the period 1st October, 2019 to 31st March, 2020.

3.

Interest subvention claim shall be filed with SIDBI in the month of December, 2020.

4.

Further SIDBI, MoMSME and Government of India retain supreme right of granting/rejecting the interest subvention claim and the decision by these authorities shall be final.

5.

ABFL shall not be liable for any inaccurate submission of data by Customer leading to rejection of claim by SIDBI.

6.

Benefit of interest subvention to customer against claim made shall be only after release of funds from SIDBI to ABFL.

7.

Interest subvention amount will be adjusted towards the principal as and when it is received.

8.

Interest subvention amount will be adjusted towards the Principal / Interest / Charges / Dues as and when it is received or as per choice under point no.6 (Six) mentioned in the declaration.

If the above-mentioned details (point 1 to 7) are not furnished / accepted by the customer on or before 15th November, 2020, then the interest subvention benefit will not be provided to them.

I Agree