Banglashree for Micro, Small and Medium Enterprises: Interest Subsidy on Term Loan (IS)
By Department of Micro, Small and Medium Enterprises and Textiles, Government of West Bengal
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Quick Answer
West Bengal government scheme providing an annual interest subsidy on term loans for Micro, Small, and Medium Enterprises in the manufacturing sector to foster growth and employment.
- Funding amount
- Up to ₹1.75Cr
- Funding type
- Subsidy
- Application deadline
- Closed
- Location
- West Bengal
- Registrations needed
- Udyam registration
Results & next round
Applications for this round closed on 31 March 2025. The organiser has not published a selection list that we can verify yet.
Selections for this programme are announced by Department of Micro, Small and Medium Enterprises and Textiles, Government of West Bengal. Official links are listed under Sources below.
We update this page when results are published, and when the next round opens.
About this subsidy
The "Interest Subsidy on Term Loan (IS)" is a crucial sub-scheme under the broader "Banglashree for Micro, Small and Medium Enterprises" initiative, launched by the Department of Micro, Small and Medium Enterprises and Textiles, Government of West Bengal. Operational from April 1, 2020, until March 31, 2025, this scheme is designed to significantly boost the MSME sector across the state.
The primary objective of the overarching Banglashree scheme is to extend robust fiscal incentives, encouraging entrepreneurs to establish new Micro, Small, and Medium Enterprises. This strategic focus aims to ensure balanced development of MSMEs throughout West Bengal, thereby cultivating a sustainable ecosystem that optimizes resource utilization, generates substantial new employment opportunities, and expands the state's industrial footprint to position it as a leader in the MSME sector nationwide.
Specifically, the Interest Subsidy on Term Loan sub-scheme targets eligible MSMEs by providing a direct financial incentive on their annual interest liability. This support is applicable to term loans secured from a diverse range of financial institutions, including Commercial Banks, Cooperative Banks, RBI-approved Scheduled Banks, Regional Rural Banks (RRBs), and Central or State Financial Institutions. By alleviating the burden of interest payments, the scheme intends to enhance the financial viability and operational efficiency of approved projects, ultimately contributing to the scheme's broader goals of economic growth and job creation within the manufacturing sector.
Eligibility
See if you're eligible
Full eligibility criteria — entity type, stage, sector, founder profile and registration requirements — plus your fit for this program. Sign up to view.
Subsidy providers
Provider
Department of Micro, Small and Medium Enterprises and Textiles, Government of West BengalWest Bengal · India
Benefits & Funding
- Amount
- Up to ₹1.75Cr
What You Get
This scheme provides a significant interest subsidy on the annual interest liability for eligible Micro, Small, and Medium Enterprises for a period of 5 years. The subsidy percentage varies based on the enterprise type and geographical zone within West Bengal. Micro & Small Enterprises are entitled to a 55% subsidy in Zone A & B, and a more substantial 70% subsidy in Zone C, D & E. Medium Enterprises receive a 25% subsidy across Zones B, C, D & E, with a generous annual ceiling of ₹1.75 crore (₹17,500,000/-). This financial support is provided on term loans secured from approved commercial and cooperative banks, as well as other financial institutions, making a substantial impact on the enterprise's operational costs and financial stability.
- Disbursement
- Reimbursement
- Bootstrap friendly
- Yes
Timelines & Process
Selection Process
Applications for the Interest Subsidy on Term Loan scheme are processed through the Shilpasathi Portal. The selection process primarily involves a rigorous verification of the applicant's eligibility based on the submitted application and supporting documents. A dedicated committee or review panel from the Department of MSME and Textiles, Government of West Bengal, or an appointed agency, will assess whether the enterprise meets all criteria, including its MSME status, manufacturing sector focus, date of commercial production, and the validity of the term loan from an approved financial institution. Successful applicants whose details align with the scheme's guidelines will be approved for the interest subsidy.
Application Process
- 1
Register on Shilpasathi
Create a new user account on the Shilpasathi Portal by providing business details and contact information.
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How to apply
Four steps from draft to disbursement — one action each.
- 1
Submit on the official portal
Use the official application link and verify all details before final submission.
- 2
Follow up
Reach out 5–7 days after submitting to confirm receipt and ask about the review timeline.
Program templates & documents
Files the program publishes for applicants — download these and apply in the prescribed format.
Frequently Asked Questions
What kind of loans are eligible for this interest subsidy?
The scheme provides interest subsidy on Term Loans borrowed from Commercial Banks, Cooperative Banks, RBI-approved Scheduled Banks, Regional Rural Banks (RRBs), and various Central and State Financial Institutions for the implementation of approved projects.
What is the duration of the interest subsidy?
An eligible enterprise will be entitled to the interest subsidy on its annual interest liability for a period of 5 years from the date of commencement of commercial production, provided all eligibility criteria are met.
How is the subsidy amount calculated for different enterprise types?
For Micro & Small Enterprises, the subsidy is 55% in Zone A & B and 70% in Zone C, D & E. For Medium Enterprises, the subsidy is 25% across Zones B, C, D & E, subject to a maximum ceiling of ₹1.75 crore per year.
Is there a specific deadline to apply for the scheme?
The scheme remains in force until March 31, 2025. Applications for interest subsidy must be submitted online within 12 months from the Date of Commencement of Commercial Production (DOCCP) or within 12 months from the date of notification of the Banglashree scheme, whichever is later, provided the DOCCP falls between 1st April 2020 to 31st March 2025.
What documents are typically required for the application?
While not explicitly listed, applicants are generally required to submit documents proving their MSME status, project details, loan sanction letters, interest payment proofs, and commercial production commencement certificates through the Shilpasathi Portal. A detailed user manual is available on the portal for specific document requirements.
Can an enterprise operating in the services sector apply for this subsidy?
No, the scheme explicitly states that the business/organization should belong to the manufacturing sector to be eligible for the interest subsidy.
Sources
Data on this page is compiled from official program and provider references.
