Back Ended Interest Subsidy in Kakinada
BEIS
Micro, Small and Medium Enterprises Department, Government of Tamil Nadu
Guidance for businesses in Kakinada
"Back Ended Interest Subsidy" by the Govt of Tamil Nadu, is introduced with the objective of reducing financial burdens of all new micro and small manufacturing enterprises who have already availed loans from banks/ other government organizations by assisting them through a subsidy on term loans.
At a glance
- CGTMSE term loans
- 5% for 5 years
- Technology upgradation / modernization
- 5% for 5 years
- General cap per loan
- —
Benefits
Subsidy of 5% on term loans subject to a maximum of ₹20,00,000 is given for a period of 5 years to all new micro and small manufacturing enterprises for term loans up to ₹2,00,00,000 obtained for Credit Guarantee Fund Trust Scheme (CGTMSE).
Subsidy of 5% on term loans subject to a maximum of ₹25,00,000 is given for a period of 5 years to all new micro and small manufacturing enterprises for term loans up to ₹5,00,00,000 obtained for technology up-gradation / modernization.
The maximum amount of BEIS payable per loan shall be ₹10,00,000 only on loans taken up to ₹1,00,00,000.
Mode of Payment: Interest subsidy shall be reimbursed once in three months on a quarterly basis to the financial institutions.
Eligibility
- Micro and Small Enterprises who have availed of term loan under Technology upgradation/modernization schemes, National Equity Funds Scheme (Renamed as Micro / Small Enterprises Funding Scheme), Scheme for ISO Certification / R & D under NSIC-SIDCO Consortium and Credit Guarantee Fund Trust Scheme.
- New Enterprises that have set up their facilities, or existing Micro, Small, and Medium Enterprises, which upgrade their existing plant and machinery with state-of-the-art technology, with or without expansion, by induction of well-established and improved technologies in specified sub-sectors / products as listed in the guidelines on Credit Linked Capital Subsidy Scheme (CLCSS) Scheme of Government of India.
Documents required
- Copy of Udyog Aadhaar memorandum/copy of Udyam Certificate.
- Copy of Loan Sanction letter from the Bank / Financial Institution in respect of Bank / Institutional financed Enterprises.
- Certificate from the bank for the interest claim for each quarter as per Annexure A.
- Bank statement for the interest paid with bank manager attestation.
- *The file type should be PDF (.pdf). The file size should be less than 200 kb.
How to apply
- 1
Registration
- Visit the Official Website/Portal of the Micro, Small, and Medium Enterprises Department of the Government of Tamil Nadu. In the top ribbon, click "Login / Registration". Fill in the mandatory details (Name, Date of Birth, Aadhaar Number, Email ID, Mobile Number), create a password (min 8 characters, 1 upper case, 1 lower case, 1 numeric), fill in the captcha, and click "Register".
- 2
Login
- On the Login Page, click "Login" and fill in the credentials received on your registered Email ID and Mobile Number.
- 3
Form Filling
- Hover over "Schemes", click the concerned scheme from the dropdown, hover over "Apply Online" and click "New Application". Fill in all mandatory fields, agree to the terms, click "Proceed", and note the reference number.
- 4
Upload Documents
- Hover over "Schemes", click "Upload Documents", provide the Application ID and click "Submit", then upload all mandatory documents in the specified format and size and click "View" to verify.
- 5
Submission
- Fill in all the checkboxes and click "Submit Application". A message regarding submission to GM/DIC/RJD is received on your mobile phone.
- 6
(Optional) Step 6: Track Application Status
- You can check the status of your application; the portal may provide updates via email or SMS.
About the scheme
The Back Ended Interest Subsidy (BEIS), by the Government of Tamil Nadu, reduces the financial burden of new micro and small manufacturing enterprises that have already availed loans from banks or other government organizations. It provides a 5% subsidy on term loans for a period of 5 years, reimbursed quarterly to the financial institutions.
Why it matters
- Interest Relief:
- 5% subsidy on term loans for 5 years.
- Manufacturing MSMEs:
- For new micro and small manufacturers.
- Quarterly Reimbursement:
- Paid to financial institutions every quarter.
- Technology Upgradation:
- Supports modernization of plant & machinery.
Focus areas
- Interest Subsidy:
- Back-ended subsidy on MSME term loans.
- Modernization:
- Technology upgradation of plant & machinery.
- Manufacturing:
- New micro and small manufacturing units.
Is this scheme right for you?
This scheme eases the loan burden of Tamil Nadu's new micro and small manufacturers with a 5% interest subsidy for five years. If you are an MSME servicing a qualifying term loan for technology upgradation or under CGTMSE, this scheme can significantly reduce your interest cost.
Frequently asked questions
What are the eligible schemes under which micro and small enterprises can avail term loans for BEIS?
Eligible schemes include Technology Upgradation/Modernization, National Equity Fund, ISO Certification/R&D under NSIC-SIDCO Consortium, and Credit Guarantee Fund Trust Scheme.
What is the application timeline for the BEIS scheme?
The application timeline for BEIS is not explicitly mentioned. Please refer to the scheme guidelines for specific details.
Are there any exclusions for enterprises applying for BEIS?
The scheme guidelines do not provide information on exclusions. Refer to the detailed scheme documentation for specific exclusions.
How often is the interest subsidy reimbursed under BEIS?
Interest subsidy is reimbursed once in three months on a quarterly basis to the financial institutions.
What is the maximum subsidy amount for term loans up to ₹1,00,00,000 under BEIS?
The maximum BEIS payable per loan is ₹10,00,000 for loans up to ₹1,00,00,000.
How much subsidy can a micro-enterprise receive under BEIS for term loans obtained through CGTMSE?
Micro-enterprises can avail a 5% subsidy, capped at ₹20,00,000, for a 5-year period on term loans up to ₹2,00,00,000 through CGTMSE.
What is the objective of the Back Ended Interest Subsidy (BEIS) scheme?
BEIS aims to alleviate financial burdens for new micro and small manufacturing enterprises by providing a 5% subsidy on term loans for a period of 5 years.
Are there any additional charges covered by the government, such as penal interest, for belated payments under BEIS?
The government does not cover penal interest or charges for belated payments; only the interest subsidy is considered under BEIS.
Is there a specific period during which the unit should be in operation to claim the interest subsidy under BEIS?
Yes, the unit should be in operation during the claimed period for interest subsidy under the BEIS scheme.
Can existing Micro, Small, and Medium Enterprises apply for BEIS if they upgrade their plant and machinery?
Yes, existing enterprises upgrading their plant and machinery with advanced technology are eligible for BEIS under certain conditions.
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