Rajasthan Additional Interest Subsidy & CGTMSE Fee Reimbursement for MSMEs
A Rajasthan government scheme giving MSMEs an extra 0.5% to 2% interest subsidy on top of RIPS 2024, plus a full refund of the annual credit guarantee fee on collateral-free loans.
- Funding amount
- Varies by program
- Funding type
- Subsidy
- Provider
- Department of Industries and Commerce, Government of Rajasthan (Government)
- Application deadline
- Rolling
- Eligible stage
- Any stage
- Location
- Open to startups registered in India
Overview
The Rajasthan MSME Policy 2024 created a second layer of loan support for the state's small businesses, and this scheme is how it is delivered. The Department of Industries and Commerce, Government of Rajasthan, runs it alongside RIPS 2024 rather than in place of it — an enterprise whose interest subvention has already been cleared under RIPS 2024 can claim an extra subsidy on the same borrowing, plus a full refund of the annual credit guarantee fee it pays on collateral-free loans.
Two goals sit behind the design. One is employment: the state wants new jobs created for all sections of society. The other is enterprise formation, so that fresh MSMEs can be set up and existing ones can expand, diversify or modernise.
The scheme remains in force until 31 March 2029, giving founders a long window to plan borrowings around it. The Office of the Commissioner, Industries & Commerce, is the nodal authority at state level, while District Industries & Commerce Centres (DICCs) execute it in each district.
Highlights
- Additional interest subsidy of 0.5% to 2% over and above RIPS 2024
- Interest subsidy applies to term loans of up to ₹50 crore
- 100% reimbursement of CGTMSE annual guarantee fee for seven years
- Fee refund covers collateral-free term loans below ₹5 crore
- Priority categories: ODOP, SC/ST, women and young (18–45) entrepreneurs
- Open round the year, but apply within 6 months of RIPS 2024 subvention approval
Who can apply
The first hurdle is RIPS 2024 itself: interest subvention under that policy must have already been approved for your enterprise. Beyond that, you need to fall into at least one of these brackets:
- One District One Product (ODOP) enterprises operating in their respective districts.
- Enterprises owned by Scheduled Caste, Scheduled Tribe or women entrepreneurs.
- Young entrepreneurs aged 18 to 45 who are starting a new enterprise — for this group the loan ceiling is ₹10 crore.
- New MSMEs, or existing MSMEs going in for expansion, diversification or modernisation in Area Category 3 as defined under RIPS 2024.
The scheme is built for micro, small and medium enterprises in Rajasthan, run by the Department of Industries and Commerce, Government of Rajasthan.
Rajasthan Additional Interest Subsidy & CGTMSE Fee Reimbursement for MSMEs is open to startups at any stage. It is open to startups registered anywhere in India.
- Eligible stage
- Any stage
- Location
- Open to startups registered in India
Deadline & timing
Rajasthan Additional Interest Subsidy & CGTMSE Fee Reimbursement for MSMEs accepts applications on a rolling basis — there is no fixed cut-off date, so eligible startups can apply at any time. Because rolling programmes can pause without notice, confirm the window is still open on the official site before you start.
What the funding covers
Two benefits stack on top of whatever RIPS 2024 already gives you.
Extra interest subsidy. Beneficiaries receive an additional subvention of 0.5% to 2% over and above RIPS 2024 on term loans taken for plant and machinery or equipment. This applies to loan amounts of up to ₹50 crore.
Full refund of the annual credit guarantee fee. Where a collateral-free term loan of under ₹5 crore has been availed under CGTMSE, the annual guarantee fee paid to the Member Lending Institution is reimbursed at 100%, for a period of seven years.
Together the two benefits lower the cost of servicing MSME debt, which is exactly the intent — new units coming up, and existing ones expanding, diversifying or modernising, with employment generated along the way.
About the provider
Rajasthan Additional Interest Subsidy & CGTMSE Fee Reimbursement for MSMEs is offered by Department of Industries and Commerce, Government of Rajasthan, a government body. As a government-backed subsidy, it is publicly funded and open to eligible startups across India.
How to apply
Applications are submitted on the . Confirm the current deadline and document checklist there before you start.
Selection process
The committee that clears your file depends on how large the loan is.
- Loans up to ₹10 crore are examined by the District Level Task Force Committee (DLTFC).
- Loans above ₹10 crore go before the High-Level Task Force Committee (HLTFC).
Both committees function under the chairmanship of the Commissioner of Industries and Commerce, Government of Rajasthan. Application routing follows the same split — the General Manager, DICC handles cases up to ₹10 crore, while larger cases go to the Commissioner, Industries & Commerce.
Once approved, claims are filed on a quarterly basis. You submit a CA Certificate (Annexure 1.2) to the concerned General Manager, DICC, who is authorised to release the sanctioned amount.
Documents you’ll need
Before you apply to Rajasthan Additional Interest Subsidy & CGTMSE Fee Reimbursement for MSMEs, keep the following documents ready:
- A pitch deck or short business plan describing the problem, product and traction
- Company registration documents and PAN
- Founder identification (PAN / Aadhaar) and brief profiles
- Recent financial statements or projections
- Product details — a demo, prototype or working link if available
Exact requirements are confirmed on the official application portal — treat this as a preparation checklist.
Frequently asked questions
How much financial support does this scheme actually provide?
There are two parts. First, an additional interest subsidy of 0.5% to 2% on term loans for plant and machinery or equipment, covering loan amounts of up to ₹50 crore. Second, a 100% reimbursement of the annual credit guarantee fee you pay to your Member Lending Institution on collateral-free CGTMSE loans below ₹5 crore, and that refund continues for seven years.
Do I need RIPS 2024 approval before I can apply?
Yes. Interest subvention must already have been sanctioned for you under RIPS 2024. This scheme is an add-on to that approval, not a standalone subsidy, so the RIPS 2024 clearance comes first.
Does the scheme take equity or a stake in my business?
No. This is a subsidy and a reimbursement, so it is non-dilutive — you do not give up any equity or ownership in return for the support.
Which entrepreneurs are specifically prioritised under the scheme?
Four groups get targeted coverage: ODOP enterprises in their respective districts, enterprises owned by Scheduled Caste, Scheduled Tribe or women entrepreneurs, young entrepreneurs in the 18 to 45 age group starting a new enterprise (with loans up to ₹10 crore), and new or expanding MSMEs located in Area Category 3 as defined under RIPS 2024.
Is there a deadline I need to watch?
There is no fixed closing date — applications are accepted on a rolling basis. The real clock is your RIPS 2024 sanction: you must file within 6 months of the interest subvention being approved. If you miss that window, a delay of up to another 6 months may be condoned by the approval committee if you give valid reasons.
What does the young entrepreneur category mean in practice?
Founders between 18 and 45 years of age who are setting up a new enterprise are covered, and for this category the loan amount considered goes up to ₹10 crore.
How and where do I submit my application?
Download the application form (Annexure 1.1) from the official website or the state portal link, fill in every mandatory field, and attach self-attested copies of the required documents. Submit the signed form and papers to the General Manager, District Industries & Commerce Centre if your loan is up to ₹10 crore, or to the Commissioner, Industries & Commerce, if it is above ₹10 crore.
Which documents are involved?
You begin with the application form, Annexure 1.1, supported by self-attested copies of the documents the form asks for. After approval, when you claim your quarterly subsidy and reimbursement, you file a CA Certificate in Annexure 1.2 with the concerned General Manager, DICC.
Who reviews and approves the application?
Loans up to ₹10 crore are reviewed by the District Level Task Force Committee, and loans above ₹10 crore by the High-Level Task Force Committee. The Commissioner of Industries and Commerce, Government of Rajasthan chairs both committees.
How do I receive the money after approval?
Claims are made quarterly. You submit the CA Certificate (Annexure 1.2) to the General Manager, DICC, and that officer is authorised to release the sanctioned amount.
Is DPIIT recognition required for Rajasthan Additional Interest Subsidy & CGTMSE Fee Reimbursement for MSMEs?
No. DPIIT (Startup India) recognition is not listed as a mandatory requirement for Rajasthan Additional Interest Subsidy & CGTMSE Fee Reimbursement for MSMEs, though having it can strengthen your application and unlock other benefits.
Who is eligible to apply for Rajasthan Additional Interest Subsidy & CGTMSE Fee Reimbursement for MSMEs?
Rajasthan Additional Interest Subsidy & CGTMSE Fee Reimbursement for MSMEs is open to startups at any stage. It is open to startups registered anywhere in India.
Who offers Rajasthan Additional Interest Subsidy & CGTMSE Fee Reimbursement for MSMEs?
Rajasthan Additional Interest Subsidy & CGTMSE Fee Reimbursement for MSMEs is offered by Department of Industries and Commerce, Government of Rajasthan, a government body. It is provided as non-dilutive funding.
How do I apply for Rajasthan Additional Interest Subsidy & CGTMSE Fee Reimbursement for MSMEs?
Apply directly through the official application link on this page. Review the eligibility criteria and prepare your startup documents before you begin.
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