Rajasthan Interest Subvention Scheme
By Department of Industries and Commerce, Government of Rajasthan
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Quick Answer
Offers a 5% interest subvention for 5 years on term loans for plant & machinery to manufacturing enterprises under the Rajasthan Investment Promotion Scheme 2024.
About this subsidy
The Interest Subvention scheme is a key incentive under the Rajasthan Investment Promotion Scheme (RIPS) 2024, designed to bolster the state's manufacturing sector. It aims to reduce the financial burden on manufacturing enterprises by providing a significant subsidy on the interest paid on their term loans. This initiative encourages new investments and expansion in plant, machinery, equipment, and related apparatus, thereby fostering industrial growth and job creation in Rajasthan. The scheme provides crucial financial relief, making it more viable for businesses to undertake capital-intensive projects and contribute to the state's economic development. By lowering the cost of borrowing, the Government of Rajasthan seeks to create a more attractive investment climate and support the sustained growth of its industrial base. The policy specifically outlines provisions for general manufacturing enterprises and offers distinct benefits for those operating in the Textile, Garments, & Apparel Sector, recognizing the strategic importance of these industries.
Eligibility
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Full eligibility criteria — entity type, stage, sector, founder profile and registration requirements — plus your fit for this program. Sign up to view.
Subsidy providers
The Industries & Commerce Department is a Government of Rajasthan department based in Jaipur. It runs the Vishwakarma Yuva Udyami Protsahan Yojana, a continuous subsidy for enterprises owned by young entrepreneurs, and it sets out further MSME subsidies and incentives in the…
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What You Get
Manufacturing enterprises are eligible for a 5% Interest Subvention on term loans taken for investment in plant & machinery or equipment / plant related apparatus. This subvention is provided for a period of 5 years.
For general manufacturing enterprises, the benefit is capped at a maximum of 2.5% of the Eligible Fixed Capital Investment (EFCI), distributed equally over the 5-year period. Enterprises in the Textile, Garments, & Apparel Sector receive the same 5% Interest Subvention for 5 years, but with a cap of 2.5% of EFCI per year. This significant financial support reduces the overall cost of capital, making investments more feasible and enhancing the competitiveness of industries in Rajasthan.
- Disbursement
- Tranched
- Duration
- 61 months
- Bootstrap friendly
- Yes
Timelines & Process
Applications
Rolling basis
Selection Process
The selection process for availing the Interest Subvention typically involves a thorough review of the application by the concerned state department. This includes verification of the manufacturing enterprise's eligibility criteria, the nature and amount of the term loan, and the details of investment in plant & machinery. The documentation provided will be scrutinized to ensure compliance with the Rajasthan Investment Promotion Scheme 2024 guidelines. Financial institutions involved may also be consulted to confirm loan details. Final approval is based on meeting all stipulated conditions and the availability of funds under the scheme.
Application Process
- 1
Apply Online
Submit a detailed application through the Rajasthan government's designated portal for RIPS 2024, including all required documentation.
You - 2
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How to apply
Four steps from draft to disbursement — one action each.
- 1
See the questions before you start
Download every question this programme's application form asks, so you can prepare your answers offline before opening the portal.
- 2
Line up your documents
Keep every document from the checklist ready in one folder. Missing docs are the #1 reason applications get bounced.
- 3
Submit on the official portal
Use the official application link and verify all details before final submission.
- 4
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 is the primary benefit of the Interest Subvention Scheme?
The scheme provides a 5% interest subvention on term loans taken by manufacturing enterprises for investment in plant & machinery or equipment / plant related apparatus, significantly reducing the cost of borrowing for capital expenditure.
For how long is the interest subvention provided?
The interest subvention is allowed for a period of 5 years from the date of availing the term loan.
Are there any caps on the subvention amount?
Yes, for general manufacturing enterprises, the subvention is subject to a maximum of 2.5% of the Eligible Fixed Capital Investment (EFCI), distributed equally over 5 years. For the Textile, Garments, & Apparel Sector, the cap is 2.5% of EFCI per year.
Which financial institutions are recognized for term loans under this scheme?
Term loans must be taken from Financial Institutions, State Financial Institutions, or Banks recognized by the Reserve Bank of India.
Does this scheme target specific industries?
While open to all manufacturing enterprises, there are specific, more advantageous provisions for enterprises operating in the Textile, Garments, & Apparel Sector.
What kind of investments does this subvention support?
It supports investments made in plant & machinery or equipment / plant related apparatus that constitute a part of the Eligible Fixed Capital Investment (EFCI).
Sources
Data on this page is compiled from official program and provider references.
