Get Expert Assistance for Capital & Interest Subsidy in Ahmedabad
Helping With Upfront Capital Investment And Interest Reduction On Bank Loans For Better Financial Stability
Consult Us Now
Introducing SDS Fin Advisory LLP.: The Leading Financial Advisory for MSME Businesses
Micro, Small, and medium-scale businesses often encounter financial problems and shortages of funds while setting up new manufacturing units or expanding the existing units. The capital investments required are excessively high, which puts businesses in a difficult situation. With not enough funds available, they usually struggle with expansion plans or need to take out multiple bank loans. While the second option does sound better, taking loans with a huge principal will further add to the financial burden in the form of higher interest rates.
This is where we SDS Fin Advisory LLP enter the picture! Our financial advisors will help you navigate through the complex subsidy procedures for capital Subsidy and bank loan interests. From providing information about the capital and interest subsidy scheme to arranging all the necessary documents, our experts will ensure to meet your business requirements. With a strong team of CA and MBA professionals, we will deliver optimal service quality in terms of financial assistance.
Whether you want to raise capital for constructing a new factory building or purchasing new machinery we will help you apply for the relevant capital subsidy & Interest Subsidy schemes available in Gujarat. So, do not wait anymore and connect with your consultants to understand the subsidies initiated by the government of Gujarat and apply for the best subsidy scheme whether you're a micro, small, or medium-scale enterprise or a large or mega-industry.
Key Benefits of Capital and Interest Subsidies
1. Reduced Total Effective Costs of Capital Investments
With capital subsidy in Ahmedabad,micro, small and medium-scale businesses will be able to reduce the capital upfront investments required. On applying, the government will provide a certain grant percentage based on eligibility, allowing businesses to purchase new equipment units, invest in a plot of land, or hire new employees for the concerned operations.
2. Lower Costs of Borrowing
MSME loans including machinery loans, term loans, working capital, and others usually have a high interest rate. Although these financial instruments are feasible to bridge the gap in funds, loans can incur huge financial burdens with time. Not being able to pay the interest on time will further affect the CIBIL. As a result, choosing an interest subsidy in Ahmedabad is the best solution to reduce borrowing costs and lower the interest rates to be paid for bank loans.
3. Improved Cash Flow and Profitability
Businesses can receive quite a significant amount of funds from the government through capital subsidies, using which they can invest in proper equipment units or expand the business operations. Apart from this, with interest subsidies, it will become easier for the MSMEs to save more on their revenues and increase the profitability factor.
4. Increased Business Competitiveness
With reduced financial burden, MSME businesses can utilize the funds properly to expand the business, upgrade the existing infrastructure, and meet the required working capital. It will further help in becoming more competitive and keeping the business afloat without any additional financial burden.
Types of Capital and Interest Subsidies Offered
1. Capital Subsidy under Aatmanirbhar Gujarat Scheme for assistance to MSMEs 2022
Micro manufacturing businesses can receive a capital subsidy in Ahmedabad of 10% to 25% of the term loan with a capping value of Rs 10 lakhs to Rs 35 Lakhs depending on the taluka.
2. Interest Subsidy under Aatmanirbhar Gujarat Scheme for assistance to MSMEs 2022
MSMEs and businesses belonging to certain pre-defined service sectors can apply for the interest subsidy in Ahmedabad. A 5% to 7% interest subsidy rate can be applied on a term loan with a maximum limit between Rs 25 Lakhs and Rs 35 Lakhs having a tenure between 5 to 7 years.
3. Interest Subsidy under the Aatmanirbhar Gujarat Scheme for assistance to Large Industries and Thrust Sector
Term loans having a tenure of 10 years with a capping principal amount of 1% to 1.2% of EFCI annually for a total period of 6, 8, and 10 years will be eligible for an interest subsidy rate of 7% for large-scale industries and the thrust sector.
4. Interest Subsidy under the Aatmanirbhar Gujarat Scheme for assistance to Mega Industries
Term loans with an EFCI of 1% rated annually are eligible for an interest subsidy of 7%, provided the total tenure is 10 years.
Secure Capital & Interest
Subsidies with Ease!
Expert guidance to help you minimize
costs and maximize profits.
Frequently Asked Questions
1. What is the eligibility criterion to apply for a capital and interest subsidy?
Since there are different subdivisions of capital and interest subsidies, the eligibility criteria will vary. So, to learn more about the same, connect with our consultants now.
2. Is it important to have a bank loan to avail of a capital subsidy?
To apply for the capital subsidy in Ahmedabad, you must have a bank loan as defined in the government subsidy schemes.
3. Who can apply for the capital subsidies?
According to the government rules, micro manufacturing units like proprietorships, partnerships, and LLPs, companies, societies, trusts, and industrial cooperative societies can apply for the capital subsidy, provided they have invested in plant & machinery with a capital upfront amount less than or equal to Rs 1 Crore.
4. Who is eligible for interest subsidy?
Interest subsidies can be claimed by both large-scale industries and micro, small, and medium-scale businesses depending on the bank loan they have taken and the principal amount.
5. What will we do for you with interest and capital subsidy?
At SDS Fin Advisory LLP., we will analyze your eligibility for the capital or interest subsidy perform all the necessary calculations, prepare the documents needed for filing for the incentive, and provide end-to-end support till the incentive amount gets credited to your bank account.
6. For how many years can I receive the capital and interest subsidies?
Depending on the taluka, you will receive an interest subsidy in Ahmedabad for 5 to 10 years while a capital subsidy is for a single-time application only.