Interest Subvention Scheme
The scheme aims to provide institutional credit for capital investments at reasonable interest rates and is implemented through the Karnataka State Financial Corporation (KSFC) in the state.
About This Scheme
Benefits
Amount of Loan:
₹5.0 L
The minimum loan size is ₹5.00 lakhs.
₹5.0 Cr
The maximum loan size is ₹500.00 lakhs for Micro and Small Manufacturing Enterprises.
₹2.0 Cr
₹200.00 lakhs for manufacturing and allied services enterprises towards building, gross block of plant and machinery directly involved in production. The loan/s over and above these limits will carry contract rate of interest.
Rate of Interest:
KSFC shall sanction loans with prevailing contract rate of interest and the promoters shall pay the interest accordingly. To avail the interest subvention under the scheme, the beneficiary / borrower shall be regular in repayment of installments of all the loans availed by the Enterprises from KSFC. The effective interest rate to be paid by beneficiary /borrower is the difference of contract rate and interest subvention of 5.5% p.a. reimbursed by Government of Karnataka.
Interest Subsidy [Subvention] Period:
The unit is eligible for interest subsidy [subvention] for a period of 5 years from the date of first disbursement of the loan, even though if the repayment period extends beyond 5 years.
Eligibility
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Required Documents
- ✦Passport-size Photograph
- ✦Registration certificate
- ✦PAN Card
- ✦Audited financial statements (if expanding an existing unit)
- ✦Bank account details for loan disbursement
- ✦Any other documents as specified by KSFC during the loan process
✦ Required ◦ Optional
How to Apply
Quick Info
- Level
- Central Government
- Max benefit
- ₹5.0 Cr