Haryana State Announced Haryana MSME Revival Interest Benefit Scheme Amid COVID-19

Harayana State came forward with a package for Micro Small and Medium Enterprises (MSMEs) to bring back their manpower and prepare for a comeback. Haryana Government has introduced "Haryana MSME Revival Interest Benefit Scheme" to motivate and help MSMEs in retaining their employees amid COVID-19 crisis.

A decision to this effect was taken in the Haryana Cabinet which met under the Chairmanship of Chief Minister, Manohar Lal Khattar here on Thursday.

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 interest 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 percent 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 percent of days between February 1, 2020 and March 15, 2020.

In case a similar incentive is extended by Government of India (Gol) to the MSME units, then under this scheme only incremental benefit shall be provided to MSME units only up-to a limit to make the total interest benefit to 8 per cent per annum on term loan / Working Capital loan.