According to the financial budget 2014-2015, in a bid to improve the condition of small scale industries, the Micro and Small Scale Industries (SSIs) of Karnataka are eligible to get an interest subsidy for their loan availed at a rate of 6% from the Karnataka State Financial Corporation (KSFC).
- The interest subsidy is of 6% on loans from KSFC.
- SSI investment limit for any project is of Rs 5 crore as per MSMED Act. But Karnataka government limited this assistance with projects worth of Rs 1 crore. However, they have increased the interest subsidy rate by 6%.
- With this interest subsidy, entrepreneurs can now avail loans from KSFC at 8% now.
- First-generation entrepreneurs can avail loan of maximum 70 lakh at 8%.
Those want to avail loan have to be First-generation entrepreneurs.
How to avail:
To avail 6% interest subsidy, eligible entrepreneurs can contact KSFC or Mysore Industries Association (MIA).