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Business & Entrepreneurship

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

As per the MSME Policy 2024, it supports the establishment of new MSMEs and the expansion, diversification, or modernization of existing ones by offering interest subsidies and reimbursement of guarantee fees to ease access to finance and reduce the cost of credit.

Authority

State/ UT

Region

Rajasthan

Status

Verified 2026

Updated

March 2026

What you get

Additional Interest Subsidy support over and above RIPS 2024 will be provided to eligible projects for establishment of new MSMEs or for expansion/ diversification/ modernization of existing MSMEs as per below: | Loan Amount for plant and machinery/equipment or apparatusInterest Subvention as per RIPS 2024Additional Interest Subvention under the schemeUp to INR 5 crores6%2%INR 5 crores-10 crores4%1%INR 10 crores-50 crores3%0.5%Note 1: The duration of the additional interest subsidy will be the same as prescribed under RIPS’2024 for MSMEs. | Note 2: Enterprises availing collateral free term loan for plant and machinery/ equipment or apparatus (for loan amount below INR 5 Cr. only) from Member Lending Institutions (MLIs) under CGTMSE will be eligible to avail assistance as reimbursement of 100% Annual Guarantee Fees paid to MLIs for the period of seven (7) years.

Who can apply

One District One Product (ODOP) enterprises in respective districts.; Enterprises owned by Scheduled Caste (SC)/Scheduled Tribe (ST) or women entrepreneurs.; 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.; Establishment of new MSMEs or expansion/ diversification/ modernization of existing MSMEs in Area Category 3 as defined in RIPS 2024.

Required Paperwork

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

Common Questions

Who can apply under this scheme?

Enterprises approved for interest subvention under RIPS 2024 and meeting category-based eligibility.

What is the maximum additional interest subsidy offered?

Up to 2% additional over RIPS 2024 rates, based on loan size.

Is reimbursement of credit guarantee fee applicable for all loans?

No, only for collateral-free loans up to INR 5 Crores under CGTMSE.

What is the reimbursement duration for guarantee fee?

For a maximum of 7 years.

What is the mode of application?

Offline submission to GM DICC or Commissioner I&C, based on loan size.

What documents are needed to claim subsidy?

CA Certificate, proof of interest paid, guarantee fee receipt, loan sanction, and RIPS approval.

Can enterprises outside Rajasthan apply?

No, the enterprise must be established in Rajasthan.

What if the application is delayed?

Delay of up to 6 months may be condoned by DLTFC/HLTFC with valid reasons.

Is this applicable to both manufacturing and services?

Yes, for enterprises engaged in both sectors.

When can I submit the claim?

After the interest subsidy under RIPS 2024 for the respective quarter has been released.