NOTIFICATION BY RBI DATED 8/10/2020- Interest Relief to Eligible MSMEs
Interest Relief to Eligible MSMEs – Scheme Valid till 31st March, 2021
On 2nd November, 2018 Ministry of MSME (MoMSME) has decided a new scheme viz. “Interest Subvention Scheme for Incremental credit to MSMEs 2018”. The scheme provides for an interest relief of two per cent per annum to eligible MSMEs on their outstanding fresh/incremental term loan/working capital during the period of its validity. The coverage of the Scheme is limited to all term loans / working capital to the extent of ?100 lakh
This scheme has been now modified as under:
1. The validity of the scheme has been extended till March 31, 2021. Accordingly, fresh or incremental term loan/working capital limit extended by co-operative banks with effect from March 3, 2020 will be eligible for coverage under the scheme. Acceptance of claims in multiple lots for a given half-year by eligible institutions is permitted.
2. Requirement of Udyog Aadhaar Number (UAN) may be dispensed with for units eligible for GST. Units not required to obtain GST may either submit Income Tax Permanent Account Number (PAN) or their loan account must be categorized as MSME by the concerned bank.
3. Trading activities have also been allowed to be covered under the scheme without UAN.