Dr.Babasaheb Ambedkar Udyog Uday Yojana: Assistance for Interest Subsidy (Service Sector)

DETAILS The scheme "Dr.Babasaheb Ambedkar Udyog Uday Yojana" is an umbrella scheme launched by the Industries and Mines Department, Gujarat. It aims to empower the state's dynamic MSME sector, which significantly contributes to employment, GDP, and exports. Effective from August 7th, 2020 to August 6th, 2025, this initiative supports SC/ST entrepreneurs and strengthens MSMEs, making them globally competitive. The component "Assistance for Interest Subsidy (Service Sector)" provides an interest subsidy on the term loan to support micro-enterprises in the service sector. BENEFITS Financial Assistance: Category of Taluka Quantum of Incentive Category I 8% on Term Loan with a maximum amount of ₹35,00,000/- per annum for a period of 7 years Category II 7% on Term Loan with a maximum amount of ₹30,00,000/- per annum for a period of 6 years Category III & Municipal Corporation Areas 6% on Term Loan with a maximum amount of ₹25,00,000/- per annum for a period of 5 years Additional Subsidy: 1% extra interest subsidy for registered startups in the service sector with Udyam/MSME Registration. ELIGIBILITY The firm must be a Micro/Small/Medium enterprise run by SC/ST entrepreneur. The enterprise must be a manufacturing enterprise. Only new MSMEs in the service sector (as per Annexure A and B) are eligible. The enterprise must have a term loan sanctioned for new machinery, equipment, or furniture/fixtures. The loan should be sanctioned within one year before the commencement of commercial production. Enterprises must have proper tax and business registrations. Note: SC/ST Enterprise: SC/ST Enterprise means the enterprise in which contribution of SC/ST entrepreneur is 51% or more. Exclusions Enterprises whose term loan is sanctioned after one year from the commencement of commercial production. Enterprises defaulting on loan repayments as per RBI and bank guidelines. Enterprises seeking reimbursement for penal interest or other bank charges. Enterprises availing interest subsidy under any Central Government scheme where the total subsidy exceeds the total interest paid.