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Business & Entrepreneurship

Aatmanirbhar Gujarat Scheme for assistance to MSMEs: Assistance for Interest Subsidy to Micro, Small and Medium Enterprise (Service Sector)

The "Aatmanirbhar Gujarat Scheme for assistance to MSMEs" aims to empower the state's dynamic MSME sector, which significantly contributes to employment, GDP, and exports.

Authority

State/ UT

Region

Gujarat

Status

Verified 2026

Updated

March 2026

What you get

Category of Taluka Quantum of Incentive Category 17% on Term Loan with a maximum amount of ₹35,00,000/- per annum for a period of 7 yearsCategory 2 6% on Term Loan with a maximum amount of ₹30,00,000/- per annum for a period of 6 years Category 3 & Municipal Corporation Areas5% on Term Loan with a maximum amount of ₹25,00,000/- per annum for a period of 5 years

Who can apply

The firm must be a Micro/Small/Medium enterprise in the service sector.; The enterprise must have obtained acknowledgment or registration from the Ministry of MSME or the Department for Promotion of Industry and Internal Trade (DPIIT), as applicable.; Only new MSME of Service sectors will be eligible for Interest subsidy on the term loan on new machinery, equipment, and furniture/fixtures (except land and building).; The enterprise must submit an application online within one year of the first loan disbursement, commencement of commercial production/services, or GR issue date, whichever is later.; Applications must be submitted before the scheme's last operative date.; The enterprise must pay regular installments and interest to the bank/financial institution.

Required Paperwork

  • Aadhaar Card
  • PAN Card
  • Income Certificate
  • Residence Proof (Domicile)

Common Questions

What is the "Aatmanirbhar Gujarat Scheme for Assistance to MSMEs"?

The "Aatmanirbhar Gujarat Scheme for Assistance to MSMEs" is a state initiative designed to support and strengthen the MSME sector in Gujarat. It aims to enhance growth, encourage investments, and contribute to the vision of self-reliant Gujarat and India.

When is the scheme operative?

The scheme is operative from October 5, 2022, to October 4, 2027, covering a period of five years.

What are the objectives of the scheme?

The scheme aims to boost MSME growth, enhance the industrial ecosystem, encourage investments, and contribute to Gujarat's and India's self-reliance vision.

What are some initiatives included in the scheme?

The scheme includes the establishment of new industrial estates, sector-specific parks, and infrastructure projects, along with amendments to the Gujarat Industrial Policy 2020 to further support MSME growth.

Who is eligible to benefit from the scheme?

MSMEs established and operating within Gujarat are eligible to benefit from the scheme, as per the criteria defined in the policy framework.

What is the incentive rate for enterprises in Category 1 areas?

Enterprises in Category 1 areas can receive 7% of the term loan amount, with a maximum of [?]35,00,000/- per annum, for a period of 7 years.

What is the incentive rate for enterprises in Category 2 areas?

Enterprises in Category 2 areas can receive 6% of the term loan amount, with a maximum of [?]30,00,000 per annum, for a period of 6 years.

What is the incentive rate for enterprises in Category 3 and municipal corporation areas?

Enterprises in Category 3 and municipal corporation areas can receive 5% of the term loan amount, with a maximum of [?]25,00,000/- per annum, for a period of 5 years.

What additional interest subsidy is available for differently-abled entrepreneurs, women entrepreneurs, and registered startups?

Differently-abled entrepreneurs, women entrepreneurs, and registered startups in the service sector are eligible for an additional 1% interest subsidy on their term loan.

Is there any additional interest subsidy for young entrepreneurs?

Yes, young entrepreneurs below the age of 35 years on the date of term loan sanction are eligible for an additional 1% interest subsidy.

What is the minimum interest that an eligible enterprise must bear?

Eligible enterprises must bear a minimum of 2% interest on the term loan levied by the bank or financial institution.

Can an enterprise avail both state and central government interest subsidies?

Yes, but the combined subsidies must ensure that the enterprise bears at least 2% of the interest after offsetting the interest subsidy from the Government of India.

What types of enterprises are eligible for this incentive?

Only service enterprises registered under the applicable Act are eligible for the interest subsidy.

Can startups apply for the additional interest subsidy?

Yes, registered startups in the service sector are eligible for an additional 1% interest subsidy on their term loan.

Are manufacturing enterprises eligible for this interest subsidy?

No, the interest subsidy is specifically for service enterprises registered under the applicable Act.