AI SummaryScheme for Additional Interest Subsidy over and Above RIPS 2024 and Reimbursement of Annual Credit Guarantee Fee gives extra financial support to new and existing MSMEs in Rajasthan. It is part of the Rajasthan MSME Policy 2024 and stays in force till 31st March 2029. The scheme adds interest subvention on top of RIPS 2024 and covers the annual credit guarantee fee, which lowers the cost of borrowing for entrepreneurs.
Department of Industries and Commerce, Government of Rajasthan runs this scheme. It helps anyone setting up a new MSME or expanding, diversifying, or modernizing an existing one. With extra interest subsidy and credit guarantee fee reimbursement, starting and growing a business becomes more affordable for small units across the state.
Scheme for Additional Interest Subsidy over and Above RIPS 2024 - Introduction
The main aim is to create jobs for all sections of society and make it easier to set up a business. Whether a person is a new entrepreneur or an established business owner, the scheme helps access capital without the heavy burden of high interest rates or credit fees. It rewards priority groups like women, SC/ST, youth, and ODOP units.
District Industries & Commerce Centers (DICC) manage the scheme at the local level. Office of the Commissioner, Industries & Commerce acts as the nodal agency to oversee the process and make sure benefits reach eligible units smoothly.
Key Information
| Scheme Name | Scheme for Additional Interest Subsidy over and Above RIPS 2024 and Reimbursement of Annual Credit Guarantee Fee |
|---|---|
| Level | State |
| Beneficiary State | Rajasthan |
| Category | Business & Entrepreneurship |
| Target Beneficiaries | Business Entity, Industries |
| Benefit Type | Cash |
| Nodal Department | Industry Department |
| Implementing Agency | District Industries & Commerce Centers, Rajasthan |
| Open Date | 2024-12-04 |
| Close Date | 2029-03-31 |
| Tags | Interest Subsidy, Collateral-Free Loans, Annual Guarantee Fees, MSME Policy, MSME, Enterprise |
Benefits
Eligible MSMEs can get additional interest subsidy over and above RIPS 2024 for their plant and machinery term loans. The support structure is given below.
| Loan Amount for Plant and Machinery/Equipment | Interest Subvention as per RIPS 2024 | Additional Interest Subvention under this Scheme |
|---|---|---|
| Up to ₹5 crores | 6% | 2% |
| ₹5 crores to ₹10 crores | 4% | 1% |
| ₹10 crores to ₹50 crores | 3% | 0.5% |
Note: Duration of the additional interest subsidy follows the same timeline as prescribed under RIPS 2024. For a collateral-free term loan below ₹5 crore taken from a Member Lending Institution under CGTMSE, a unit can claim 100% reimbursement of the annual guarantee fees paid, for a period of seven years.
Eligibility
To qualify, the enterprise must first have an approved interest subvention under RIPS 2024. After that, it should match at least one of the priority categories below.
- ODOP (One District One Product) enterprises.
- Enterprises owned by SC/ST or women entrepreneurs.
- New enterprises started by young entrepreneurs aged 18 to 45 years, with a loan amount up to ₹10 crore.
- MSMEs in Area Category 3 as defined in RIPS 2024.
For example, if Priya runs a textile unit under ODOP in her district and already has RIPS 2024 approval, she can apply for this extra support.
Application Process
Applications are submitted offline in the prescribed format. There is no public online portal for this scheme. The application must reach the right authority within six months of the RIPS 2024 approval.
STEP 1 - Download and print the application form as per Annexure 1.1 of the scheme guidelines.
STEP 2 - Fill in all fields clearly and attach the self-attested documents.
STEP 3 - Submit the application to the General Manager, District Industries & Commerce Centre (DICC) for loans up to ₹10 crore, or to the Commissioner, Industries & Commerce for loans above ₹10 crore. Submit within 6 months of the RIPS 2024 approval.
STEP 4 - A local committee (DLTFC or HLTFC) reviews the application based on the loan amount.
STEP 5 - Once approved, claim the subsidy and reimbursement quarterly by submitting a CA Certificate (Annexure 1.2) to the DICC.
STEP 6 - The DICC then disburses the funds directly to the unit.
Condonation of Delay: If a unit misses the deadline, the committee may allow a delay of up to 6 months when a valid written reason is provided.
Documents
The following documents are required along with the application.
- Board Resolution or Power of Attorney for the authorized signatory.
- Udyam Registration Certificate (URC).
- Original RIPS 2024 application and submitted project report.
- Bank loan sanction letter, repayment schedules, and proof of disbursal.
- Certificate confirming the loan was used for purchasing plant, machinery, or equipment.
- Copy of the first bill of sale or supply.
- Copy of the official sanction letter for interest subvention under RIPS 2024.
- Relevant proofs for the specific eligibility category, such as age proof or caste certificate.
- Undertaking on non-judicial stamp paper as per Annexure 1.3.
References
Rajasthan MSME Policy 2024 Scheme Guidelines
Rajasthan MSME Policy 2024 Official PDF
Amended Annexure 1.2 Notification
FAQ's
Who can apply under this scheme?
Enterprises that have received interest subvention approval under RIPS 2024 and fall into one of the priority categories.
What is the maximum additional interest subsidy offered?
Up to 2% additional subsidy over RIPS 2024 rates, depending on the total loan amount.
Is reimbursement of the credit guarantee fee applicable for all loans?
No, it is only available for collateral-free loans up to ₹5 crore covered under the CGTMSE framework.
What is the reimbursement duration for the guarantee fee?
This fee can be claimed for a maximum period of seven years.
What is the mode of application?
The application is submitted offline to the GM of the local DICC or the Commissioner of Industries & Commerce.
What documents are needed to claim the subsidy?
RIPS 2024 approval, a CA Certificate, proof of interest payments, and loan sanction records.
Can enterprises outside Rajasthan apply?
No, this scheme is specifically for enterprises located within the state of Rajasthan.
What if the application is delayed?
With a valid reason, the committee can condone the delay for up to 6 months.
Is this applicable to both manufacturing and services?
Yes, the business can be in either the manufacturing or service sector.
When can a claim be submitted?
A quarterly claim can be submitted only after the interest subsidy for that quarter under RIPS 2024 has been officially released.