The Back Ended Interest Subsidy (BEIS) scheme, implemented by the Micro, Small and Medium Enterprises Department, Government of Tamil Nadu, is designed to alleviate the financial burden on new micro and small manufacturing enterprises. Under this initiative, eligible businesses can avail a 5% interest subsidy on term loans for 5 years, subject to specified limits. The scheme aims to support enterprises availing loans for technology upgradation, modernization, and other specified purposes under government-backed schemes like the Credit Guarantee Fund Trust Scheme (CGTMSE).

By providing financial relief through subsidized interest rates, the BEIS scheme encourages entrepreneurship, fosters technological advancements, and promotes sustainable growth within the MSME sector in Tamil Nadu.

Key Benefits of the Scheme

• Subsidy Rate: 5% on term loans.
• Maximum Subsidy Amount:
  • ₹20,00,000 for term loans up to ₹2,00,00,000 under the CGTMSE scheme.
  • ₹25,00,000 for term loans up to ₹5,00,00,000 for technology upgradation/modernization.
• Loan Ceiling for Maximum Subsidy: ₹1,00,00,000 (maximum BEIS payable per loan: ₹10,00,000).
• Duration of Subsidy: 5 years.
• Reimbursement Frequency: Quarterly basis to financial institutions.

Eligibility Criteria

To qualify for the Back Ended Interest Subsidy (BEIS) scheme, applicants must meet the following criteria;

General Eligibility

• Enterprise Type: New micro and small manufacturing enterprises.
• Loan Purpose: Term loans availed for technology upgradation, modernization, or other eligible schemes such as:
  • Credit Guarantee Fund Trust Scheme (CGTMSE).
  • National Equity Funds Scheme (renamed as Micro/Small Enterprises Funding Scheme).
  • Scheme for ISO Certification/R&D under NSIC-SIDCO Consortium.
• Existing Enterprises: Existing MSMEs upgrading their plant and machinery with state-of-the-art technology, with or without expansion, are also eligible.

Additional Requirements

• The enterprise must operate in specified sub-sectors/products listed under the Credit Linked Capital Subsidy Scheme (CLCSS) of the Government of India.
• The enterprise must not be involved in activities excluded under the scheme guidelines.

How to Apply – Online Process

The application process for the BEIS scheme is entirely online and involves the following steps;

Step 1: Registration

1. Visit the official portal of the Micro, Small and Medium Enterprises Department, Government of Tamil Nadu.
2. Click on “Login / Registration” in the top ribbon.
3. Fill in the registration form with mandatory details: Name, Date of Birth, Aadhaar Number, Email ID, Mobile Number, and create a password (minimum 8 characters, including uppercase, lowercase, and numeric fields).
4. Enter the captcha code and click “Register.”

Step 2: Login

1. Visit the login page and enter your registered credentials (received via email and SMS).

Step 3: Form Filling

1. Hover over “Schemes” in the top ribbon and select the BEIS scheme from the dropdown menu.
2. Click “Apply Online” and select “New Application.”
3. Fill in all mandatory fields of the application form, review the information, agree to the terms and conditions, and click “Proceed.”
4. Note the reference number displayed on the screen and click “Close.”

Step 4: Upload Documents

1. Hover over “Schemes” in the top ribbon and select “Upload Documents.”
2. Provide the Application ID and click “Submit.”
3. Upload all required documents in PDF format (file size < 200 KB).
4. Verify the uploaded documents by clicking “View.”

Step 5: Submission

1. Check all checkboxes at the bottom of the screen and click “Submit Application.”
2. A confirmation message will be sent to your registered mobile number.

(Optional) Step 6: Track Application Status

1. Use the reference number to track the status of your application on the portal. Updates will also be communicated via email or SMS.

Necessary Documents for Application

To ensure a smooth application process, gather the following documents;

• Udyog Aadhaar Memorandum/Udyam Certificate.
• Loan Sanction Letter: Issued by the bank/financial institution.
• Interest Claim Certificate: From the bank for each quarter (as per Annexure A).
• Bank Statement: For interest paid, attested by the bank manager.
• All documents must be in PDF format and less than 200 KB in size.

Frequently Asked Questions (FAQs)

What are the eligible schemes under which micro and small enterprises can avail term loans for BEIS?

Eligible schemes include;

• Credit Guarantee Fund Trust Scheme (CGTMSE).
• National Equity Funds Scheme (Micro/Small Enterprises Funding Scheme).
• Scheme for ISO Certification/R&D under NSIC-SIDCO Consortium.

What is the application timeline for the BEIS scheme?

Applications can be submitted online throughout the year, subject to the availability of funds.

Are there any exclusions for enterprises applying for BEIS?

Enterprises engaged in activities outside the specified sub-sectors/products under CLCSS are excluded.

How often is the interest subsidy reimbursed under BEIS?

The subsidy is reimbursed quarterly to financial institutions.

What is the maximum subsidy amount for term loans up to ₹1,00,00,000 under BEIS?

The maximum subsidy amount is ₹10,00,000.

What is the objective of the BEIS scheme?

The scheme aims to reduce the financial burden on new micro and small manufacturing enterprises by providing interest subsidies on term loans for 5 years.

Are there any additional charges covered by the government, such as penal interest for belated payments?

No, the scheme does not cover penal interest or other charges.

Is there a specific period during which the unit should be in operation to claim the interest subsidy?

The unit must be operational during the subsidy period, but there is no specific prior operational requirement.

Conclusion – Useful Links

The Back Ended Interest Subsidy (BEIS) scheme is a vital initiative aimed at empowering micro and small manufacturing enterprises in Tamil Nadu by reducing their financial burden through interest subsidies. By supporting technology upgradation and modernization, the scheme fosters innovation, enhances productivity, and contributes to the overall growth of the MSME sector.

Official Website

Scheme Details & Guidelines

If you’re a micro or small enterprise owner in Tamil Nadu, take advantage of this opportunity to access affordable credit and drive your business forward. Visit the official MSME portal today and apply for the BEIS scheme to unlock its benefits!