Interest subvention to benefit thousands of MSMEs

MSME entrepreneurs, who have resumed their work overcoming the COVID-19 challenge, are expected to benefit from the interest waiver package announced by the State government.   | Photo Credit: K. Ragesh

The interest subvention for term loan and working capital loan declared by the State government is likely to benefit thousands of micro, small and medium enterprises(MSMEs) in Kozhikode district, which were going through acute financial crisis following the pandemic outbreak. The newly declared benefits under the ‘Vyavasaya Bhadratha’ (industrial safety) scheme will be available for those who secured bank loans for various ventures from April to December 31, 2020.

According to Industries Department officials, 50% interest subsidy will be granted for eligible entrepreneurs under the scheme. The maximum amount to be granted for a loan will be ₹30,000.

Those who have taken term loan and working capital loan will be eligible to claim ₹60,000 as subsidy. Only units which functioned properly in the first three months of 2020 will be eligible to apply for the aid.

As of now, there are about 11,500 registered MSME units in Kozhikode district alone.

Official figures with the District Industries Centre show that these units have around 45,000 workers to support various production activities. Self-help groups and individual ventures by a large number of women entrepreneurs are also part of the network.

The closure of many such units after the COVID-19 outbreak led to the declaration of relief measures by the government. An official attached to the Industries Department said the interest subvention for term loan and working capital loan was only one of the several relief measures earlier declared by the State government.

“About 17 specific measures, including extension of moratorium on industrial purpose loans, one-time settlement benefits, waiver of penal interests, interest-free top up loans and freezing of various premium payments or payments for common facilities, had been taken,” he said. The official also said the measures to start new ventures in the MSME sector were simplified to facilitate the entry of more youths into the sector and increase local employment opportunities.

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Printable version | Apr 19, 2021 11:26:20 PM | https://www.thehindu.com/news/cities/kozhikode/interest-subvention-to-benefit-thousands-of-msmes/article33630090.ece

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