AI SummaryInterest Subsidy Scheme, 2017 supports micro, small, and medium manufacturing units and eco-tourism projects in Goa by giving a subsidy on the interest paid on term and working capital loans. The scheme is run by the Directorate of Industries, Trade and Commerce (DITC), Government of Goa, and helps businesses stay financially strong by offering up to ₹25,00,000 per year, with an enhanced limit of ₹27,50,000 for women, Scheduled Caste (SC), or Scheduled Tribe (ST) applicants.
The scheme is still open under the Goa State Incentives to Encourage Investments Scheme, 2017 (Umbrella Scheme), which the government has extended up to 31 March 2026. Applications are now submitted online through the Goa MSME portal, and the subsidy is paid on the interest actually paid by the unit during the claim year. Enterprises that started production on or after 1 October 2017 and keep at least 60% Goan manpower on regular payroll can get this benefit.
Interest Subsidy Scheme, 2017 - Introduction
Interest Subsidy Scheme, 2017 assists local industries in managing their money problems by providing a significant interest subsidy on business loans. Launched by the Directorate of Industries, Trade and Commerce (DITC), Government of Goa, this scheme encourages steady growth for manufacturing units and eco-tourism ventures.
By easing the burden of interest on term and working capital loans, this scheme helps entrepreneurs strengthen their operations. To qualify for these benefits, an enterprise should keep at least 60% Goan manpower. For instance, if Rahul runs a small manufacturing unit in Goa, he could get support on his loan interest as long as most of his staff members are locals. The scheme gives annual benefits of up to ₹25,00,000, while women, SC, or ST entrepreneurs can claim up to ₹27,50,000 per year.
Applications are now made online. A unit logs in to the Goa MSME portal, picks the Interest Subsidy Scheme, 2017 from the list of schemes, and clicks the Apply button, after which the site moves the user to the Goa Online portal to submit the application. The subsidy is subject to fund availability and is paid only on the interest actually paid to the bank or financial institution.
Key Information
| Detail | Information |
|---|---|
| Scheme Name | Interest Subsidy Scheme, 2017 |
| Level | State |
| Beneficiary State | Goa |
| Benefit Type | Cash Subsidy |
| Nodal Department | Directorate of Industries, Trade and Commerce (DITC) |
| Category | Business and Entrepreneurship |
| Application Mode | Online |
| Official Website | msme.goa.gov.in |
Benefits
This scheme helps reduce operational costs by giving financial support on loan interest payments. The subsidy is worked out on the interest actually paid by the unit during the claim year.
| Loan Type | Subsidy Calculation |
|---|---|
| Term Loan | 30% of interest paid |
| Working Capital Loan | Lesser of 1.5% of annual turnover or 30% of interest paid |
The annual subsidy ceiling is ₹25,00,000, which rises to ₹27,50,000 for women, SC, and ST applicants. The subsidy amount also depends on Goan employment, rising on a straight scale from 60% to 100% as Goan staff goes from 60% to 80% and above. The subsidy grant period lasts for a maximum of seven years, that is 27 continuous quarters. The first claim must be submitted during the validity of the scheme to stay eligible for later payments. Rescheduled loans do not qualify, and any default in repayment leads to a proportional cut in the subsidy amount.
Eligibility
To apply for this scheme, the following criteria should be met:
- Micro, Small, or Medium (MSM) manufacturing units listed under the White, Green, or Orange category that started production on or after 1 October 2017 are eligible.
- Hinterland Eco-tourism projects in lesser-developed talukas can apply if they hold valid registration from the Department of Tourism, Goa IPB, Town and Country Planning, PDA, or the Eco Sensitive Zone Authority.
- Enterprises must keep at least 60% Goan manpower on regular payroll for the full claim year, where a Goan is a person born in Goa or holding a 10-year residence certificate issued by the Mamlatdar.
- Loans must be taken from a nationalized bank, scheduled private bank, Co-operative Bank, Economic Development Corporation Limited (EDC), or a Non-Banking Financial Institution recognized by the Reserve Bank of India.
Exclusions
Interest subsidy is not given in the following cases:
- If similar benefits have already been claimed under another Government of Goa scheme or program.
- If the business takes incentives from the Department of Information Technology, Government of Goa.
- If the EDC loan is covered under the Modified Interest Rebate Scheme, 2012, or interest is paid under the Chief Minister Rojgar Yojana (CMRY) or other employment generation schemes.
- If the unit is registered under the Goa State Financial Relief Scheme for Sick Industrial Units, 2016.
- For penal interest, overdue charges, or any other punitive charges.
Application Process
Applications are now submitted online through the Goa MSME portal. The steps are simple and can be done from home.
STEP 1 - Log in to the Goa MSME website at msme.goa.gov.in and open the scheme details page for Interest Subsidy Scheme, 2017.
STEP 2 - Select Interest Subsidy Scheme, 2017 from the list of schemes and click on the Apply button.
STEP 3 - The site will redirect to the Goa Online portal, where the complete application is submitted along with the required documents.
The Task Force Committee, which includes the Director of Tourism as a member, reviews the application. If a unit runs multiple businesses with a consolidated balance sheet, a Chartered Accountant certificate giving the interest details unit-wise must be submitted, and the claim is made only for the eligible unit.
Documents
Make sure the following documents are ready when filing the claim:
- Copy of registration under the Umbrella Scheme.
- Duly signed self-declaration in the prescribed format.
- Bank certificates confirming the total interest paid, along with the sanction letter of the term loan.
- Financial statements and annual turnover certificates certified by a Chartered Accountant.
- CA certificate showing the interest paid on working capital and term loans separately, along with the annual turnover of the claim year.
- Payroll record showing the number of total employees and Goan employees.
- Certificate stating no dual benefits were claimed from the Department of Information Technology or other Goa state schemes.
- Support documents for eco-tourism projects, if applicable.
- Loan agreement copy and bank details linked to the Aadhaar card.
- Pollution clearance certificate from the Goa State Pollution Control Board.
- Proof of shareholding for SC/ST/OBC or women promoters.
- Memorandum of Association, Articles of Association, or partnership deed.
References
Official Scheme Notification PDF
Goa MSME Scheme Details and Apply
FAQ's
What is the mandatory minimum percentage of Goan manpower that an enterprise must employ to remain eligible?
Enterprises must keep at least 60% Goan staff on regular payroll during the claim year. The subsidy rises on a straight scale as Goan employment goes from 60% to 80% and above.
When is an industry considered eligible based on its start date?
Manufacturing units must have started commercial production on or after 1 October 2017.
How is the subsidy calculated for a working capital loan?
The subsidy is the lower of 1.5% of the total annual turnover OR 30% of the interest amount paid on the loan.
Are eco-tourism projects eligible for this scheme?
Yes, Hinterland Eco-tourism projects in lesser-developed talukas can apply if they hold valid registration from the Department of Tourism, Goa IPB, Town and Country Planning, PDA, or the Eco Sensitive Zone Authority.
What if a loan has been taken from the Economic Development Corporation Limited?
Such loans can be used for the scheme unless they are already covered under the Modified Interest Rebate Scheme, 2012, the Chief Minister Rojgar Yojana, or other employment generation schemes.
Can interest subsidy be claimed for penal charges?
No, the scheme strictly excludes penal interest, overdue fees, and other punitive charges from the reimbursement calculation.
Can a claim be revived if it is not filed on time?
No, the scheme does not allow revival of lapsed claims. The delayed claim facility is available for each independent claim except the last one, and applications must be filed within the timeframes set in the Umbrella Scheme.