Haryana formulates scheme to provide interest benefit on loans to MSMEs

To facilitate industrial units in Haryana in retaining their employees amid the COVID-19 crisis, the Haryana government has formulated a scheme to provide interest benefit on loans to MSMEs.

The Haryana cabinet, which met under the chairmanship of Chief Minister Manohar Lal Khattar here on Thursday, approved the 'Haryana MSME revival Interest Benefit Scheme'.

This scheme aims to provide interest benefit on loans to MSME units so that they can pay wages to all their employees including permanent /contractual staff and workers.

Under this scheme,all MSME units working in Haryana as on or before March 15, 2020, will be eligible for 100 percent interest benefit on loans availed for payment of the wages of employees or other expenses up to a maximum of Rs 20,000 per employee for a period of six months, an official statement said.

The benefit shall be limited to the interest paid by the unit to the bank / financial institution up to a period of six months. The interest benefit shall be calculated at the interest rate of maximum 8 per cent per annum or actual interest rate charged by the bank / financial institution on term loan/ working capital loan, whichever is lower.

To avail the benefits of this scheme, the industrial unit should be in commercial production for at least 80 per cent of days between February 1, 2020 and March 15, 2020.

In case a similar incentive is extended by the Government of India to the MSME units, then under this scheme only incremental benefit shall be provided to these units up to a limit to make the total interest benefit to 8 per cent per annum.

This scheme shall come into effect on the date of its notification in the Haryana government in official gazette and shall remain in force until three months of the notification of the scheme, it said.

The MSME sector, which generates huge employment, has been adversely hit by the coronavirus-triggered lockdown.