Interest Subsidy Scheme 2017

The Interest Subsidy Scheme, 2017 is implemented by the Directorate of Industries, Trade and Commerce (DITC), Government of Goa under the Goa State Incentives to Encourage Investments Scheme, 2017 (Umbrella Scheme). The scheme was introduced to support industrial development in the state by reducing the borrowing cost for enterprises investing in manufacturing and industrial activities. It forms an important part of the state’s policy framework aimed at encouraging new investments, capacity expansion, and modernisation of industries in Goa.

The main objective of the scheme is to provide interest subsidy on loans taken by eligible industrial units for setting up new projects, expansion, diversification, or modernisation. By subsidising a portion of the interest payable on these loans, the government aims to improve access to finance for businesses and make industrial investments more viable. For you as an MSME or manufacturing enterprise in Goa, this scheme can significantly reduce financing costs during the initial years of your project, allowing you to invest more confidently in production capacity and technology.

Key Features
Financial Assistance
Eligibility Criteria
Documents Required
Application Process

Key Features

Interest Subsidy on Term Loans - The scheme provides a subsidy on interest paid on term loans taken for establishing new industrial units or for expansion, diversification, or modernisation of existing units. This helps reduce the cost of borrowing for capital investment projects.
Subsidy on Working Capital Borrowings - Apart from term loans, the scheme also provides support related to working capital financing used in industrial operations. This helps enterprises manage operational funding requirements more efficiently.
Support for MSME Manufacturing Units - The scheme primarily focuses on micro, small, and medium manufacturing industries operating in Goa. These enterprises often face challenges in accessing affordable credit, and the interest subsidy helps make financing more accessible.
Environmental Category Requirement - Eligible units must fall under the White, Green, or Orange environmental categories, as defined by the applicable pollution control regulations. This ensures that the incentive promotes environmentally compliant industries.
Eligibility Based on Production Start Date - The industrial unit must have commenced production after 01 October 2017 to qualify for benefits under this scheme.
Long-Term Financial Support - The subsidy is available for a maximum period of seven years (27 continuous quarters) from the quarter in which the subsidy is first claimed, helping enterprises manage interest costs during the early growth phase.

Financial Assistance

Component	Assistance Provided	Detailed Explanation of Component & Assistance Provided
Interest Subsidy on Term Loans	Up to 30% reimbursement of interest paid	Eligible units may receive subsidy equivalent to up to 30% of the interest paid on term loans taken for industrial investment projects. Example: If an enterprise pays ₹10 lakh in interest on a project loan in a year, the subsidy may reimburse up to ₹3 lakh, subject to scheme limits.
Working Capital Interest Support	Linked to 1.5% of turnover or 30% of interest paid (whichever is lower)	For working capital loans, subsidy may be calculated based on 1.5% of the unit’s total turnover or 30% of interest paid, whichever is lower, subject to scheme ceiling. Example: If the interest paid on working capital loan is ₹6 lakh and 30% equals ₹1.8 lakh, the eligible subsidy would be determined within the scheme limits.
Duration of Subsidy	Up to 7 years (27 continuous quarters)	The interest subsidy benefit may be claimed for a maximum of seven years from the quarter in which subsidy is first claimed, helping reduce financial burden during the initial operational period.

Eligibility Criteria

To qualify for benefits under the scheme, the applicant must meet the following conditions:

The applicant must be a micro, small, or medium manufacturing enterprise located in Goa.
The unit must fall under White, Green, or Orange environmental category as defined by relevant pollution control norms.
The enterprise must have commenced production after 01 October 2017.
The unit must obtain term loans or working capital loans from recognised banks or financial institutions for the industrial project.
The enterprise must undertake new industrial projects, expansion, diversification, or modernisation activities.
The enterprise must comply with the guidelines issued by the Directorate of Industries, Trade and Commerce.

Documents Required

Key documents typically required include:

Business registration certificate of the enterprise
MSME / Udyam registration certificate
PAN card of the enterprise
Loan sanction letter from bank or financial institution
Bank certificate showing interest paid on the loan
Detailed project report or investment proposal
Financial statements of the enterprise
Bank account details for subsidy disbursement

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 / Offline (Government Process)

Online Process

Visit the Goa government’s industry services portal.
Register your enterprise and create login credentials.
Locate the Interest Subsidy Scheme application form.
Fill in the required details including enterprise information and loan details.
Upload supporting documents such as bank certificates and project details.
Submit the application and obtain an acknowledgement number.
Track the application status online.
Contact DITC for clarification if required.

Offline Process

Obtain the prescribed application form from the DITC office.
Fill in the enterprise, project, and loan details.
Attach supporting documents such as loan sanction letters and bank certificates showing interest paid.
Submit the completed application to the department.
Receive acknowledgement of submission.
The department reviews the application before approving the subsidy.

Frequently asked questions

What is the objective of the Interest Subsidy Scheme, 2017?

The scheme aims to reduce borrowing costs for industrial enterprises by providing subsidies on the interest paid on loans taken for setting up, expanding, or modernising industrial units in Goa.

Who administers the scheme in Goa?

The scheme is implemented by the Directorate of Industries, Trade and Commerce, Government of Goa, which processes applications and approves eligible subsidy claims.

Which enterprises can apply for this scheme?

Micro, small, and medium manufacturing enterprises located in Goa that fall under the white, green, or orange environmental category and have commenced production after 01 October 2017 may apply.

What type of loans are eligible for the subsidy?

Both term loans for industrial projects and working capital loans used for industrial operations may qualify for subsidy under the scheme.

What percentage of interest subsidy is provided?

For term loans, subsidy may be calculated up to 30% of the interest paid, subject to scheme ceilings and conditions specified by the government.

How is subsidy calculated for working capital loans?

The subsidy for working capital loans may be calculated based on 1.5% of the enterprise’s turnover or 30% of interest paid, whichever is lower, subject to scheme limits.