Back Ended Interest Subsidy (BEIS) is a Tamil Nadu government scheme that helps new micro and small manufacturing enterprises repay their term loans with less pressure. The Micro Small and Medium Enterprises Department runs this scheme, which gives a 5% interest subsidy on term loans for a period of five years to businesses that have already taken a loan from a bank or a government body.
Back Ended Interest Subsidy (BEIS) by the Government of Tamil Nadu exists to lighten the financial load of new micro and small manufacturing enterprises. If you have already secured a loan from a bank or a government organization, this scheme supports you through an interest subsidy on your term loans for a period of 5 years. For instance, if an entrepreneur sets up a new small manufacturing unit and secures a qualifying term loan, the subsidy helps make the business journey smoother and more sustainable.
Back Ended Interest Subsidy - Introduction
Managed by the Micro Small and Medium Enterprises Department, this scheme provides essential relief to units that have availed term loans under specific programs. The subsidy is paid directly to the financial institution on a quarterly basis, so the enterprise does not have to run behind the department for the money. As of 2026, the scheme continues to be open for eligible micro and small manufacturing enterprises in Tamil Nadu.
Key Information
| Key Attribute | Details |
|---|---|
| Scheme Name | Back Ended Interest Subsidy (BEIS) |
| Beneficiary State | Tamil Nadu |
| Target Group | Micro and small manufacturing enterprises |
| Benefit Type | Cash subsidy on interest |
| Subsidy Rate | 5% for up to 5 years |
| Nodal Department | Micro Small and Medium Enterprises Department |
Benefits
This scheme provides significant financial relief through the following interest subsidy. The government reimburses the interest subsidy to the financial institution directly on a quarterly basis, so the unit gets the benefit without any extra paperwork.
| Loan Purpose | Subsidy Percentage | Maximum Subsidy Amount |
|---|---|---|
| Term loans up to ₹ 2,00,00,000 (CGTMSE) | 5% | ₹ 20,00,000 |
| Technology up-gradation loans up to ₹ 5,00,00,000 | 5% | ₹ 25,00,000 |
| General loans up to ₹ 1,00,00,000 | 5% | ₹ 10,00,000 |
Mode of Payment: The interest subsidy is reimbursed to the financial institution once in three months on a quarterly basis. The unit should have been prompt in paying the loan and interest. If there is a default in payment, the subsidy is not paid during the period of default.
Eligibility
You are eligible to apply if you meet the following criteria. The scheme covers both new enterprises that have set up their facilities and existing enterprises that upgrade their plant and machinery with modern technology.
- You operate a micro or small enterprise that has secured a term loan under specific programs like Technology Upgradation, National Equity Funds, or the Credit Guarantee Fund Trust Scheme (CGTMSE).
- You have set up a new facility or are an existing enterprise upgrading your machinery with modern technology as per the Credit Linked Capital Subsidy Scheme (CLCSS) guidelines.
Application Process
You should follow these steps for the online application process on the official MSME Tamil Nadu portal.
STEP 1 - Visit the Official Portal, click on Login/Registration, and fill in your details including Aadhaar number and contact information. Create a secure password to complete your profile.
STEP 2 - Access the Login Page using the credentials sent to your registered email or mobile number.
STEP 3 - Navigate to the Schemes section, select this scheme, and complete the application form. Review your details carefully before clicking Proceed and noting your reference ID.
STEP 4 - Use the Upload Documents tab in the portal to submit your files in the required format. Verify the uploads to make sure they are accurate.
STEP 5 - Click on Submit Application once all fields and documents are verified. You will receive a confirmation message regarding the status of your application from the relevant district office.
Documents
Please make sure you have digital copies of the following documents ready in PDF format under 200 kb before you start the application.
- Copy of Udyog Aadhaar or Udyam Certificate.
- Loan sanction letter from your financial institution.
- Bank certificate for interest claims for each quarter.
- Bank statement reflecting interest payments, duly attested by your bank manager.
References
Detailed Guidelines | Contact Us | Required Documents List
FAQ's
Which loan schemes are eligible for BEIS?
Qualifying loans include those for Technology Upgradation/Modernization, National Equity Fund, ISO Certification, and the Credit Guarantee Fund Trust Scheme.
How often is the interest reimbursed?
The subsidy is reimbursed to the financing bank every three months on a quarterly basis.
What is the maximum subsidy for a loan of ₹ 1,00,00,000?
For loans up to ₹ 1,00,00,000, the maximum subsidy payable is ₹ 10,00,000.
Does the government cover penal interest?
No, the scheme only covers the base interest subsidy; it does not cover penal interest or charges for delayed payments.
Are existing enterprises eligible?
Yes, existing enterprises upgrading their machinery with modern technology are eligible to apply.