Affordable Credit with Haryana’s Interest Subsidy Scheme

The Haryana Enterprises and Employment Policy (HEEP), 2020 aims to promote economic growth, attract investment, and generate employment opportunities in the state. A crucial aspect of this policy is the Interest Subsidy Scheme, which makes credit more affordable for businesses, thereby reducing the overall cost of doing business.

What is the Interest Subsidy Scheme?

The Interest Subsidy Scheme is designed to support Micro, Small & Medium Enterprises (MSMEs), Start-ups, and enterprises focused on import substitution. By offering an interest subsidy ranging from 5% to 8% for a duration of 5 to 7 years, the government seeks to encourage industrial growth and financial sustainability for new and existing businesses.

This scheme is implemented under Chapter 14 of the Haryana Enterprises and Employment Policy, 2020, and was officially notified through Gazette Notification No. 25/05/2020-4IB-I dated 29.12.2020.

Key Benefits of the Interest Subsidy Scheme

Financial Relief for MSMEs & Startups
- Helps new businesses reduce their financial burden by lowering interest costs.
- Encourages more entrepreneurs to set up units in Haryana.
Encouragement for Import Substitution
- Supports businesses that manufacture products to replace imports, boosting self-reliance.
Varied Incentives Based on Business Segment & Location
- The quantum of subsidy depends on the category of business:
  - Micro Enterprises: Higher interest subsidy.
  - Small & Medium Enterprises: Moderate subsidy levels.
  - Large & Mega Projects: Custom incentives based on investment.
- Projects in backward areas may get higher incentives.
Long-Term Support
- Subsidy available for 5 to 7 years, ensuring sustained financial assistance

Who Can Apply?

Businesses eligible to apply for the Interest Subsidy Scheme include:

New Micro, Small & Medium Enterprises (MSMEs).
Start-ups registered in Haryana.
Enterprises engaged in import substitution.
Large & Mega projects investing in key sectors.

How to Apply?

Entrepreneurs can apply for the Interest Subsidy Scheme through the Haryana Udyam Memorandum (HUM) Portal. The process typically involves:

Registering the business in Haryana.
Submitting project details and investment plans.
Providing financial documents showing credit availed from banks or financial institutions.
Verification and approval by the concerned government authority.

Conclusion

The Interest Subsidy Scheme under HEEP 2020 is a game-changer for businesses in Haryana. It not only reduces financial stress but also encourages investment and innovation, making the state an attractive destination for industrial growth. If you are planning to start a business or expand your existing enterprise, now is the perfect time to leverage this scheme and benefit from lower interest rates!