Interest Subsidy

Benefits of Interest Subsidy at glance
  1. Reduces Loan Repayment Burden: A portion of the interest cost is reimbursed, lowering EMI payments.
  2. Improves Cash Flow: Businesses retain more working capital by saving on interest expenses.
  3. Encourages Expansion and Modernization: Makes it easier to invest in business growth initiatives.
  4. Supports MSMEs and Startups: Helps small businesses access affordable financing options.
  5. Enhances Competitiveness: Allows businesses to focus more on growth, innovation, and quality improvement.
  6. Strengthens Economic Contribution: Businesses become stronger contributors to regional and national economies.
  • Industry Type: Eligible for manufacturing, service, export-oriented units, and select sectors.
  • Sole proprietorships, partnerships, private limited, public limited companies, MSMEs.
  • Purpose of Loan: For business expansion, technology upgrades, working capital, or modernization.
  • Loan Type: Must be a sanctioned loan from an eligible financial institution.
  • New and Existing Units: Both are eligible if they meet the guidelines.
  • Financial Health: Good creditworthiness and proper repayment history.

To successfully apply for the Interest Subsidy, you will need the following documents:

  1. Business Registration Documents:
    GST registration, incorporation certificate, partnership deed, or MSME registration
  2. KYC Documents:
    PAN card, Aadhaar card, passport-sized photographs of proprietors/directors/partners
  3. Bank Statements:
    Last 6 to 12 months of company bank account statements
  4. Detailed Project Report (DPR) if Applicable:
    Including project objectives, cost estimates, technology upgradation details, and expected outcomes
  5. Sanction Letter from Bank/FI
    Loan sanction letter from the financing bank with the repayment schedule 
  6. CA Certificate:
    Chartered Accountant’s certificate for project cost breakup and financial standing)
  7.  
  8. Proof of Location
    (Factory address proof — utility bills, rent agreement, or ownership documents
  9. Subsidy Application Form:
    Duly filled and signed as per the format prescribed by the nodal agency
Loan Tenure
Interest Rates (Range) %
2-5 Years
8-12
5-10 Years
9-14
10-15 Years
10-14
15-20 Years
11-16

What types of technology and machinery qualify for the TUFF Subsidy?

The subsidy covers specific machinery and technology that improve productivity, quality, and sustainability in the textile industry. Eligible equipment includes weaving machines, knitting machines, dyeing units, and other advanced processing technologies.

Which businesses can apply for the TUFF Subsidy?

Businesses in the textile industry, including MSMEs and manufacturers, are eligible to apply. Both new and existing units can receive support if they meet the required conditions.

How much financial assistance can I receive through the TUFF Subsidy?

The subsidy amount varies depending on the project and machinery costs. It typically covers a percentage of the expenses related to upgrading technology and equipment.

What is the typical processing time for TUFF Subsidy approval?

The approval and disbursement process usually takes between 3 to 6 months, depending on the completeness of the application and required documentation.

Are small businesses or startups eligible for the TUFF Subsidy?

Yes, small businesses and startups in the textile sector are eligible. They must meet the same eligibility criteria as established businesses to apply for the subsidy.

Interest Subsidy

What is Interest Subsidy

Interest Subsidy is a financial support scheme provided by the government or financial institutions to reduce the interest burden on business loans. Under this scheme, a part of the interest payable on the loan is reimbursed, making borrowing more affordable. This encourages businesses, especially MSMEs, to invest in expansion, modernization, and working capital without facing high financing costs.
It serves as a powerful tool to promote entrepreneurship, innovation, and industrial growth across various sectors.

Why Interest Subsidy

Interest Subsidy makes credit more accessible and affordable for businesses, helping them overcome financial barriers to growth. By reducing the effective cost of borrowing, it supports expansion, modernization, and sustainability.
It also strengthens the ecosystem for small and medium enterprises, enabling them to compete on a national and global scale without excessive financial burden.

What We Offer For Interest Subsidy

At Bizfin Service we offer end-to-end assistance for businesses seeking to benefit from Interest Subsidy schemes. Our services include eligibility evaluation, assistance with loan documentation, preparation of necessary subsidy application forms, and coordination with financial institutions and government departments.
We also ensure error-free paperwork and real-time follow-ups to speed up your approval and disbursement process. Our expert guidance ensures you enjoy lower interest rates, improved cash flow, and smooth processing from start to finish.

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