Interest Subsidy on Term Loan for Powerloom MSMEs, West Bengal (₹8.8 Cr) — Frequently Asked Questions

The amount depends on your unit's size and zone. Micro and Small Enterprises get a subsidy covering 55% of the interest they pay each year in Zone A and Zone B, and 70% in Zone C, D and E. Medium Enterprises get 25% of the term loan interest paid, with an annual ceiling of ₹1,75,00,000. The scheme is advertised with a headline support level of up to ₹8.8 crore.

Micro, small and medium enterprises in West Bengal's powerloom sector that started commercial production between 1 January 2022 and 31 December 2024 can apply. Your project also needs a detailed feasibility report, approval from a central financial institution, a commercial bank or a state financial institution, and a four-party agreement with the Directorate of Textiles, the lending institution and Tantuja.

It covers part of the interest you owe on a term loan taken for an approved project that upgrades powerloom technology or infrastructure. The loan has to come from an eligible lender — a commercial bank, a cooperative bank, an RBI-approved scheduled bank, a Regional Rural Bank, or a central or state-level financial institution. The support runs for five years.

Yes. The interest subsidy is available for a period of five years from the point your unit qualifies, after which the support ends.

It is paid once a year, not as a single upfront amount. Before each release, your lending bank or financial institution has to confirm that the interest due for the period was paid on time and that your enterprise has not defaulted.

The scheme itself is valid until 31 December 2024. Your first application has to be submitted within 12 months of the date your commercial production began, and that date of commencement must fall inside the scheme's validity window of 1 January 2022 to 31 December 2024.

No. It is an interest subsidy, so the government does not take any stake, shares or ownership in your enterprise in return for the support.

Applications are made offline. You fill in the prescribed form, Form-A2, attach the relevant supporting documents, and submit it to the Directorate of Textiles. The office is at the Directorate of Textiles, Handlooms, Spinning Mills, Silk Weaving & Handloom Based Handicrafts Division, New Secretariat Buildings, 1, K. S. Roy Road, 5th Floor, 'B' Block, Kolkata 700001. For each annual payout, a statement or certificate from your lender confirming timely interest payments is also required.

The scheme's stated criteria are built around your unit being an MSME in the powerloom sector of West Bengal with a lender-approved project; DPIIT startup recognition is not listed as a condition. What matters is the MSME status, the timing of commercial production, the feasibility report and the financial institution's approval.

The Directorate of Textiles reviews applications for compliance with the scheme's eligibility conditions, including the feasibility report and the financial institution's approval. The subsidy is then sanctioned on the strength of those approvals, and each yearly release is confirmed through verification of your interest payments.

Interest Subsidy on Term Loan for Powerloom MSMEs, West Bengal (₹8.8 Cr) is offered by Department of Micro, Small and Medium Enterprises and Textiles, Government of West Bengal, a government body. It is provided as non-dilutive funding.