Banglashree for MSMEs - Interest Subsidy on Term Loan (IS)
Banglashree for MSMEs - Interest Subsidy on Term Loan (IS) is a Government of West Bengal incentive under the Department of Micro, Small & Medium Enterprises and Textiles, notified on 22 July 2020 and effective from 1 April 2020 to 31 March 2025.
The scheme aims to reduce the financial burden of loan repayment for MSMEs by providing a subsidy on interest paid on term loans taken for approved projects. For you as an MSME, this benefit lowers your cost of borrowing and improves project viability by reimbursing a portion of interest paid to banks or financial institutions.
Key Features
- Interest cost reduction: Provides subsidy on interest paid on term loans taken for MSME projects.
- Zone-based benefits: Higher subsidy for enterprises located in backward areas (Zones C, D & E).
- Support across MSME categories: Separate subsidy structure for Micro, Small, and Medium enterprises.
- Encouragement for formal financing: Applicable only on loans from approved banks and financial institutions.
- Annual reimbursement system: Subsidy is disbursed annually after verification of interest payment.
- Defined duration: Benefit available for a fixed period of 5 years.
Financial Assistance
Eligibility Criteria
- Must be a Micro, Small or Medium Enterprise (manufacturing sector)
- Must be located in West Bengal
- Must have Udyam / Udyog Aadhaar Registration
- Must have taken term loan from approved bank / financial institution
- Project must be approved before implementation
- Must have commenced commercial production within scheme period
- Must regularly pay interest without default
Additional conditions:
- Loan must be used for approved project only
- Enterprise must comply with scheme conditions
Non-eligibility conditions:
- Enterprises without term loan
- Defaulting borrowers
- Projects not approved under scheme
Documents Required
- Udyam Registration Certificate
- Term Loan Sanction Letter
- Bank certificate of interest paid
- Project approval documents / DPR
- Bank account details
Application Process
Option 1: Apply with Bullit, Recommended
Start instantly with our guided application support, where our team verifies eligibility, prepares documentation, and coordinates with the Industries Department on your behalf. Using our business loans and compliance calendar, you can track progress while focusing on project execution, we manage the application end-to-end.
Option 2: Apply Online (Government Process)
- Register with District Industries Centre (DIC)
- Fill application form (Form-A)
- Submit term loan and project details
- Upload required documents
- Submit application
- Verification by DIC and financial institution
- Submission of bank certificate of interest paid
- Approval of subsidy amount
- Annual disbursement of subsidy
- Track application status through DIC