Interest subsidy is the quiet workhorse of Gujarat's industrial incentives. Under the state's MSME and industrial policies, an eligible new or expanding unit can claim reimbursement of a portion of the interest paid on its term loan — commonly up to 7% per annum — for a fixed period of five to seven years. The effect on your effective cost of borrowing is dramatic.
Consider a term loan at, say, 10.5%. With a 7% interest subsidy, your net effective rate drops to the low single digits for the subsidy period. Combine that with the central CLCSS capital subsidy on machinery and the state capital subsidy, and well-structured projects can achieve an effective cost of finance below 4% — a level no commercial lender offers outright.
The subsidy is usually disbursed annually against proof of interest actually paid, which means the claim is not one-and-done — it must be filed correctly each year for the full eligible period. Many businesses claim the first year and then let it lapse through paperwork fatigue, leaving lakhs on the table. We manage the recurring claim so you collect every year you are entitled to.
Eligibility, the exact percentage and the ceiling depend on your sector, MSME status and taluka. We assess your specific case, ensure your term-loan sanction is documented in a way that qualifies, and then run the annual claim cycle end to end.
Key benefits
- ✓Up to 7% per year interest reimbursement
- ✓Runs for 5–7 years on your term loan
- ✓Pushes effective borrowing cost to low single digits
- ✓Stacks with capital subsidy & CLCSS
- ✓We manage the recurring annual claim
Who is eligible
- ●New or expanding MSME unit in Gujarat
- ●Term loan from a bank / financial institution
- ●Udyam registration
- ●Commercial production commenced
Documents required
- 📄Term-loan sanction & disbursement letters
- 📄Interest paid certificate from the bank
- 📄Udyam registration & project report
- 📄Commercial production proof
- 📄Annual interest statements for renewals
How it works
- 1Eligibility mapping
We map your project against every applicable Gujarat and central scheme to identify exactly what you can claim.
- 2Application & documentation
We prepare and file the subsidy application with the correct authority — iNDEXTb, DIC, or the financing bank.
- 3Follow-up & sanction
We track the file through scrutiny and inspection until your subsidy is sanctioned.
- 4Disbursement & claims
We manage annual / periodic claims so you keep receiving the benefit for its full eligible period.