IND MSME GIFT

ü  MSEs availing benefit of guarantee cover under CGTMSE can not avail guarantee cover under MSE-GIFT scheme.

ü  MSE unit should not be defaulted to any Banks/FIs/NBFCs etc.

ü  The names of the promoters/directors/partners/proprietor should not be appearing in various defaulter lists /CFR/CIBIL/RBI/IBA third party list/caution lists etc. as per Bank’s guidelines.

ü  CMR of 1 to 4 or equivalent CIC score.

ü  In case of CMR-NA, CIC score of promoters should be 750&above.

o    Mitigation including energy efficiency, cleaner production, resource efficiency, circular economy, etc.

o    Adaptation (water management, water efficiency, wastewater treatment, etc.)

o    Environmental protection (Pollution control, Prevention and treatment)

o    Green buildings, green products, and materials

o    Transport (Urban Rail/Metro, Electric, Hybrid, Battery, EV charging stations)

o    Waste management (Recycling, Waste treatment, Disposal) including waste to energy, e-waste, etc.

o    Cleaner & Greener fuels like Compressed Biogas, ethanol, LNG, smart grids, etc.

o    Any new and innovative project with the potential for a high impact on climate even though such projects may appear to be highly risky.

o    Any other activity which ensures a better environmental outcome.

Subvention will be available to MSEs for a maximum period of 5 years.

Interest subvention will be available on loans sanctioned upto and including 31.3.2026.

All the assistance sanctioned after the date of notification of the scheme by MoMSME, GoI would be in operation till such time the interest subvention corpus is fully committed or the tenure of the scheme, whichever is earlier.

Term Loans sanctioned for acquiring new plant & machinery for technology and process up-grade under the scheme shall qualify for the interest subvention subject to compliance with extant scheme guidelines notified by SIDBI from time to time.

Amount

Maximum: Rs 2.00 Crore

o   Machinery – Hypothecation of assets created out of the term loan proceeds.

Collateral Security:

o   Nil collateral, if covered under CGTMSE. Guarantee Fee to be borne by borrower.

o   Coverage under Hybrid model is also permitted as per extant CGTMSE guidelines.

Personal Guarantee: Personal Guarantee of Partners / Directors as per extant guidelines.

Period

ü  Minimum Repayment Period: 36 Months including moratorium period                     (As per Scheme)

ü  Maximum Repayment : Upto 60 Months

Other Constitution based documents.

charges

ü  Documentation charges à 50 % Card Rate

ü  Other Charges as per Service Charges Circular.

Any deviation in benchmark ratios to be dealt as per delegated powers.

ü  Sunset clause: All the assistance sanctioned after the date of notification of the scheme by MoMSME, GoI would be in operation till such time the interest subvention corpus is fully committed or the tenure of the scheme, whichever is earlier.

ü  Amount should be remitted directly to the dealers / suppliers by means of DD / NEFT / RTGS.

ü  Units should obtain necessary approvals from the statutory/ regulatory authorities.

ü  All securities should be adequately insured with Bank Clause (Comprehensive Insurance) – Premium to be borne by the borrower.

ü  Any expenditure incurred on ‘civil works or major construction’ is excluded from Ind MSE-GIFT scheme.

ü  Promoters’ contribution should be brought up front proportionately.

ü  Pre-Release Audit/legal Audit are to be conducted as per extant guidelines of Credit Policy.

ü  Charges to be registered with ROC/other authorities as per extant guidelines.

ü  Compliance to KYC/ AML and other guidelines to be ensured.

ü  Credit Policy guidelines to be complied. Any modifications in the credit policy from time to time will form integral part of the scheme

ü  Standard operating procedure for Interest subvention under the scheme is detailed in Annexure – II