Scheme for Additional Interest Subsidy over and above RIPS 2024 and Reimbursement of Annual Credit Guarantee Fee

Description
The "Scheme for Additional Interest Subsidy over and above RIPS 2024 and Reimbursement of Annual Credit Guarantee Fee" has been introduced under the Rajasthan MSME Policy 2024 by the Department of Industries and Commerce, Government of Rajasthan. Under this scheme, support will be provided to selected projects for establishment of new MSMEs or for expansion/ diversification/ modernization of existing MSMEs through the provisions given in the policy. The scheme will remain in force until 31st March 2029. Objective: The scheme’s objective is to create new employment opportunities for all sections of society in the state and to ease the establishment of enterprises in the state. The policy envisages supporting the creation of new MSMEs or the expansion/diversification/modernization of existing MSMEs through additional interest subsidies and collateral-free loans. Scheme Implementation: This scheme will be implemented through the respective District Industries & Commerce Centers in their districts under the aegis of the Department of Industries & Commerce. Office of the Commissioner, Industries & Commerce will be the nodal agency for the implementation and supervision of the scheme at the state level.

Benefits
• Note 1: The duration of the additional interest subsidy will be the same as prescribed under RIPS’2024 for MSMEs.

Eligibility Criteria
1. **Following type of beneficiaries would be eligible for additional interest subsidy as per the scheme:**
2. Interest subvention subsidy should have been approved for the applicant under RIPS 2024; and
3. Beneficiary enterprise should fall under any of the following categories:
4. - One District One Product (ODOP) enterprises in respective districts.
5. - Enterprises owned by Scheduled Caste (SC)/Scheduled Tribe (ST) or women entrepreneurs.
6. - Young entrepreneurs in the state in the age group of 18 to 45 years for starting their new enterprise for a maximum loan amount of up to ₹10 crore.
7. - Establishment of new MSMEs or expansion/ diversification/ modernization of existing MSMEs in Area Category 3 as defined in RIPS 2024.

Application Process
Step 1: Application Process:
Offline

Application Process:

Required Documents
• Board Resolution/Power of attorney in the name of Authorized Signatory
• Udyam Registration Certificate (URC)
• Application made under RIPS 2024 along with the Project Report submitted
• Loan sanction letter, repayment schedule(s), and disbursal schedule (till date of production) from lending institution/bank(s)
• Certification confirming utilization of loan for purchase of plant and machinery/equipment or apparatus
• Copy of first bill of sale/supply
• Copy of Sanction/Approval Letter/EC issued for Interest Subvention under RIPS 2024
• Relevant certificates/documents confirming adherence to the eligibility criteria
• Undertaking/Declaration on non-judicial stamp paper as per Annexure 1.3

Frequently Asked Questions
Q: Who can apply under this scheme?
A: Enterprises approved for interest subvention under RIPS 2024 and meeting category-based eligibility.

Q: What is the maximum additional interest subsidy offered?
A: Up to 2% additional over RIPS 2024 rates, based on loan size.

Q: Is reimbursement of credit guarantee fee applicable for all loans?
A: No, only for collateral-free loans up to INR 5 Crores under CGTMSE.

Q: What is the reimbursement duration for guarantee fee?
A: For a maximum of 7 years.

Q: What is the mode of application?
A: Offline submission to GM DICC or Commissioner I&C, based on loan size.

Q: What documents are needed to claim subsidy?
A: CA Certificate, proof of interest paid, guarantee fee receipt, loan sanction, and RIPS approval.

Q: Can enterprises outside Rajasthan apply?
A: No, the enterprise must be established in Rajasthan.

Q: What if the application is delayed?
A: Delay of up to 6 months may be condoned by DLTFC/HLTFC with valid reasons.

Q: Is this applicable to both manufacturing and services?
A: Yes, for enterprises engaged in both sectors.

Q: When can I submit the claim?
A: After the interest subsidy under RIPS 2024 for the respective quarter has been released.