The Back Ended Interest Subsidy (BEIS) scheme, initiated by the Micro, Small and Medium Enterprises (MSME) Department, Government of Tamil Nadu, is designed to reduce the financial burden of new micro and small manufacturing enterprises that have already availed loans from banks or other government organizations. By offering a subsidy on term loans for a period of 5 years, the scheme supports enterprises under various financing schemes, such as those obtained through the Credit Guarantee Fund Trust Scheme (CGTMSE) and loans for technology upgradation/modernization.
Benefits
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For Term Loans up to ₹2,00,00,000 (CGTMSE):
A subsidy of 5% on the term loan is provided for 5 years, subject to a maximum subsidy of ₹20,00,000. -
For Term Loans up to ₹5,00,00,000 (Technology Upgradation/Modernization):
A subsidy of 5% is provided for 5 years, subject to a maximum subsidy of ₹25,00,000. -
Special Provision:
For loans taken up to ₹1,00,00,000, the maximum BEIS payable per loan shall be ₹10,00,000. -
Mode of Payment:
The interest subsidy is reimbursed to the financial institutions on a quarterly basis.
Eligibility
Eligible enterprises include:
- Micro and Small Enterprises that have availed term loans under schemes such as:
- Technology Upgradation/Modernization
- National Equity Funds Scheme (now known as the Micro/Small Enterprises Funding Scheme)
- Scheme for ISO Certification/R&D under the NSIC-SIDCO Consortium
- Credit Guarantee Fund Trust Scheme (CGTMSE)
- New enterprises setting up facilities, as well as existing MSMEs upgrading their plant and machinery through the adoption of improved technologies, with or without expansion.
Note: The scheme applies to enterprises in specified sub-sectors/products as per the guidelines on the Credit Linked Capital Subsidy Scheme (CLCSS) of the Government of India.
Application Process
Online
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Registration:
- Visit the official website/portal of the MSME Department, Government of Tamil Nadu.
- Click on “Login / Registration” on the top ribbon.
- Fill in the registration form with mandatory details: Name, Date of Birth, Aadhaar Number, Email ID, and Mobile Number. Create a password (minimum 8 characters, with at least 1 uppercase letter, 1 lowercase letter, and 1 numeric digit). Complete the captcha and click “Register.”
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Login:
- Go to the Login page, enter the credentials received via registered email and mobile, and log in.
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Form Filling:
- Once logged in, hover over the “Schemes” tab and select the BEIS scheme.
- Click on “Apply Online” and then “New Application.”
- Complete the 7-step application form, ensuring all mandatory fields are filled correctly. Review, acknowledge, and agree to the terms, declaration, and privacy policy. Note the reference number displayed after submission.
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Document Upload:
- Navigate to the “Upload Documents” section, enter the Application ID, and upload all mandatory documents in the specified format (PDF, file size <200 kb). Verify uploads for correctness.
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Submission:
- Fill in all the checkboxes at the bottom of the screen and click “Submit Application.”
- A confirmation message regarding the submission will be sent to your mobile phone.
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(Optional) Tracking:
- You may check the status of your application via the online portal. Updates are provided via email or SMS.
Access the User Manual, Application Preview, and Sample Filled Form via the provided links on the official portal.
Documents Required
- Copy of Udyog Aadhaar Memorandum or Udyam Certificate.
- Copy of the Loan Sanction Letter from the Bank/Financial Institution.
- Certificate from the bank for the interest claim for each quarter as per Annexure A.
- Bank statement for the interest paid, with bank manager attestation.
- (Other documents as specified in the scheme guidelines.)
Frequently Asked Questions
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What are the eligible schemes under which micro and small enterprises can avail term loans for BEIS?
Eligible schemes include those for technology upgradation/modernization, the Micro/Small Enterprises Funding Scheme, ISO Certification/R&D under NSIC-SIDCO, and the Credit Guarantee Fund Trust Scheme. -
What is the application timeline for the BEIS scheme?
The timeline for application and reimbursement is detailed in the official guidelines provided by the MSME Department. -
Are there any exclusions for enterprises applying for BEIS?
Only those enterprises that meet the eligibility criteria under the specified schemes are eligible. Detailed exclusions are mentioned in the guidelines. -
How often is the interest subsidy reimbursed under BEIS?
The interest subsidy is reimbursed quarterly to the financial institutions. -
What is the maximum subsidy amount for term loans up to ₹1,00,00,000 under BEIS?
The maximum BEIS payable per loan for term loans up to ₹1,00,00,000 is ₹10,00,000. -
How much subsidy can a micro-enterprise receive under BEIS for term loans obtained through CGTMSE?
For term loans up to ₹2,00,00,000 under CGTMSE, a 5% subsidy is provided, subject to a maximum of ₹20,00,000. -
What is the objective of the Back Ended Interest Subsidy (BEIS) scheme?
The objective is to reduce the financial burden on new micro and small manufacturing enterprises by subsidizing the interest on term loans for a period of 5 years. -
Are additional charges like penal interest for late payments covered under BEIS?
The scheme primarily covers the regular interest subsidy; additional charges are subject to the terms and conditions specified in the guidelines. -
Can existing MSMEs apply for BEIS if they upgrade their plant and machinery?
Yes, existing MSMEs that upgrade their facilities through the induction of new and improved technologies are eligible under the scheme.