Goa Interest Subsidy Scheme, 2008 — Up to ₹5L a Year for MSEs — Frequently Asked Questions

Instead of paying out a lump sum, the scheme reimbursed part of the interest that an eligible unit had paid on its borrowings. The Directorate of Industries, Trade and Commerce, Government of Goa, calculated the subsidy each year and passed it on to units that met the eligibility conditions, which lowered the real cost of servicing debt during the early years of operation.

The annual subsidy was the lower of two numbers: 1% of the unit's total net turnover, or 30% of the interest it had actually paid. On top of that, the payout could not exceed ₹5,00,000 in a single year, so the ceiling applied regardless of how large the turnover or interest figure was.

Support ran for 5 years, or 20 quarters, counted from the quarter in which the unit's commercial production began. That made it a multi-year relief rather than a single payment.

Only new Micro and Small Enterprises that began commercial production after the scheme's launch in 2008 and were permanently registered with Entrepreneur Memorandum II at the Directorate of Industries, Trade and Commerce. The unit also had to fall within the industries on the 'Green' list or the specified 'Orange' list, and it could not be a unit being revived under the sick unit revival policy.

Permanent registration with Entrepreneur Memorandum II at the Directorate of Industries, Trade and Commerce, Government of Goa. That registration, along with proof of having commenced commercial production after the scheme's launch, was central to establishing eligibility.

No. It was a subsidy, not an investment, so the Directorate took no stake in the enterprise and the promoter's ownership stayed fully intact. There was also nothing to repay — the amount was a reimbursement of interest already paid, subject to the annual ceiling.

The unit's term loan or working capital had to come from a nationalized bank, a scheduled bank, a Co-operative Bank, Economic Development Corporation Ltd., or any other financial institution notified by the Government of Goa. Borrowings outside those sources did not count toward the calculation.

Units classified as Orange II and II B were excluded, even though the scheme otherwise covered industries on the 'Green' list and a specified part of the 'Orange' list. Businesses subject to a revival plan defined under the sick unit revival policy were also outside its scope.

Applications had to be filed after the close of every financial year and before 31st May, with the final application window falling on 31 May 2011. The scheme itself, however, remained in force only until March 31, 2011, so new claims can no longer be made.

The applicant obtained the prescribed proforma from the Directorate of Industries, Trade and Commerce or downloaded it from the official website, then printed it, filled in all mandatory fields, pasted a passport-sized photograph and attached self-attested copies of the required documents. The signed form and documents went to the Task Force Committee constituted under the scheme, which scrutinised the application and issued its recommendation within three months of receipt, after which recommended cases moved forward for final approval and disbursement.

No. DPIIT (Startup India) recognition is not listed as a mandatory requirement for Goa Interest Subsidy Scheme, 2008 — Up to ₹5L a Year for MSEs, though having it can strengthen your application and unlock other benefits.

Goa Interest Subsidy Scheme, 2008 — Up to ₹5L a Year for MSEs is offered by Directorate of Industries, Trade and Commerce, Government of Goa, a government body. It is provided as non-dilutive funding.

Apply directly through the official application link on this page. Review the eligibility criteria and prepare your startup documents before you begin.