Aatmanirbhar Gujarat MSME Interest Subsidy — Up to ₹35 Lakh a Year — Frequently Asked Questions

It is a subsidy on the interest of a term loan, not a lump sum handed over upfront. Category 1 talukas get 7%, capped at ₹35,00,000 per year for 7 years. Category 2 talukas get 6%, capped at ₹30,00,000 per year for 6 years. Category 3 talukas and municipal corporation areas get 5%, capped at ₹25,00,000 per year for 5 years. Across the whole period a single enterprise can draw up to ₹2.45 crore, and the assistance band for this component runs from ₹1.3 crore to ₹2.5 crore.

Newly established MSMEs that operate in the service sector and hold MSME or DPIIT registration as applicable. The unit must also be servicing a term loan used for new machinery, equipment or furniture and fixtures, and it has to keep up with its instalments and interest payments.

Yes. The enterprise must have either acknowledgment or registration from the Ministry of MSME, or recognition from DPIIT, whichever applies to it. Without that paperwork in place, the application will not clear the screening stage.

Only new assets: machinery, equipment, and furniture or fixtures. Land and building are explicitly left out, so a loan taken to buy premises or property does not qualify for the subsidy.

The scheme runs until 4 October 2027 and no application can be filed after that date. Within that window, you must apply online within one year of the latest of three events — the first disbursement of your term loan, the commencement of commercial production or services, or the issue of the GR.

No. This is a subsidy that reduces the interest you owe your bank or financial institution, so it is non-dilutive and you give up no stake or ownership in your enterprise.

Through the Gujarat government's Investor Facilitation Portal at https://ifp.gujarat.gov.in/DIGIGOV/. Register as a new investor, verify the link sent to your email, then log in, open the application for the interest subsidy, fill in your business details and upload the mandatory documents. The direct application link is https://ifp.gujarat.gov.in/IC/digigov.htm?actionFlag=loadCitizenRegPage.

Incorporation documents, your MSME or DPIIT registration, details of the loan disbursement, and a project report, along with whatever else the scheme guidelines specify for upload on the portal.

Location sets the rate and the ceiling, because talukas are placed into three categories. The term loan itself is reviewed too: what it financed, whether the assets purchased are new, and whether the investment meets the guidelines. Approval and disbursement follow verification by a designated committee or authority within the Industries and Mines Department.

Aatmanirbhar Gujarat MSME Interest Subsidy — Up to ₹35 Lakh a Year is offered by Industries and Mines Department, Government of Gujarat, a government body. It is provided as non-dilutive funding.