Credit Linked Interest Subsidy Scheme (Haryana MSME)

What is the Haryana Credit Linked Interest Subsidy Scheme?

Credit Linked Interest Subsidy Scheme is the term Haryana industry uses for the Interest Subsidy Scheme notified by the Industries and Commerce Department on 29 July 2021 under Chapter 14 of the Haryana Enterprises and Employment Policy 2020. The stated objective is to provide affordable credit to new micro, small and medium enterprises, start-ups and enterprises operating for import substitution.

The scheme reimburses part of the interest a unit pays on its term loan. It does not lend money and it does not subsidise working capital. The subsidy is tied to a term loan sanctioned by a bank or financial institution.

According to the notification, the scheme commenced on 1 January 2021 and was to remain in operation for 5 years. A term loan sanctioned on or after 1 January 2021 and before 31 December 2025 is admissible. The Industries and Commerce Department extended the Haryana Enterprises and Employment Policy 2020 and the schemes notified under it on 9 January 2026, until a new industrial policy is notified.

Haryana runs a second, separate interest scheme under the same policy, the State Credit Linked Interest Subsidy Scheme for Technology Up-gradation (SCLISS), notified on 4 October 2021. Both are described on this page because applicants regularly confuse them.

How much interest subsidy does Haryana pay?

The rate depends on who you are, what you make, and which block your unit sits in. Haryana classifies its blocks into A, B, C and D categories, with D the most backward. Every category below is capped at Rs 20 lakh per year.

Expansion and diversification. An existing micro or small enterprise that makes additional investment of at least 50% in plant and machinery in one go qualifies at 5%, rising to 6% under the thrust-sector and import-substitution head and 7% under the agro-based head. This benefit is available one time during the operational period of the scheme.

Haryana's 8 thrust sectors are auto, auto components and light engineering; agro-based, food processing and allied industry; textiles and apparels; electronics system design and manufacturing; defence and aerospace manufacturing; pharmaceutical and medical devices; chemical and petrochemical; and large scale energy and data storage. The list can be amended by the Haryana Enterprises Promotion Board.

Who is eligible, and who cannot claim

You can claim if:

• Your enterprise is a micro, small, medium or start-up enterprise, new or undertaking expansion or diversification.
• You have availed a term loan after 1 January 2021 from a financial institution, co-operative bank, Sarv Haryana Kshetriya Gramin Bank or a commercial bank.
• You have filed the Udyam Registration Certificate (URC) and the Haryana Udhyam Memorandum (HUM) on the portal, at any stage.
• Your unit has obtained NOC or CLU from the competent authority, where applicable.
• Your unit is in commercial production, and in regular production at the time of disbursement.

Size thresholds follow the MSMED Act 2006: a micro enterprise has plant and machinery up to Rs 1 crore and turnover up to Rs 5 crore; a small enterprise up to Rs 10 crore and Rs 50 crore; a medium enterprise up to Rs 50 crore and Rs 250 crore. A start-up must be registered with Startup Haryana.

You cannot claim if:

• Your item of manufacture falls in the restrictive list notified by the State Government.
• Your unit is closed. The notification states plainly that subsidy shall not be released to a closed unit.
• Your term loan was sanctioned before 1 January 2021.
• Your unit is in an A category block, which the Interest Subsidy Scheme does not cover.
• You are an individual seeking a personal loan subsidy. This is an enterprise incentive, claimed by a registered unit, not a citizen benefit.
• Your unit is not in commercial production at the time of claim or disbursement.

What documents are required?

The bank certificate is the document claims most often stall on. It must state the term loan sanctioned and the rate, the amount disbursed and the date of the first instalment, the repayment made during the financial year split between principal and interest, and three explicit confirmations: that the unit is regular in repayment, that no penal interest has been charged, and that the interest was calculated on the original term loan sanctioned.

How to apply for the Haryana interest subsidy

1. File your Udyam Registration Certificate and Haryana Udhyam Memorandum on the department portal, if you have not already done so.
2. Collect the Annexure-II bank certificate from your branch manager and the Annexure-III Chartered Accountant certificate, complete with UDIN.
3. Fill the Annexure-I application form, which asks for your block name and its B, C or D category, unit category, URC and HUM number and date, commercial production date as per the first sale bill, loan sanctioned, cost of project as approved by the bank, fixed capital investment split across land, building, plant and machinery, means of finance, the applicable rate of 5%, 6%, 7% or 8%, and interest subsidy claimed in earlier years.
4. Swear the undertaking on non-judicial stamp paper of at least Rs 50 before a Notary Public or First Class Magistrate.
5. Submit the claim online to the Director or Director General, Micro, Small and Medium Enterprises, on the department's web portal at haryanaindustries.gov.in, within 3 months of the close of the financial year for which the incentive is claimed.
6. Clear deficiencies within 10 days. The Joint Director or Deputy Director of your District MSME Centre scrutinises the claim, inspects the unit, and communicates deficiencies in writing within 7 days. You get 10 days to fix them; if you do not, the claim is filed and you are told by email.
7. Track the sanction. The service delivery timeline allows 30 working days for the letter of approval, 7 for the letter of sanction and 7 for disbursement.

What is the State Credit Linked Interest Subsidy Scheme (SCLISS)?

State Credit Linked Interest Subsidy Scheme for Technology Up-gradation is a separate scheme notified on 4 October 2021 under Chapter 14, clause 14.6 and Annexure-4 clause 4.17 of the same policy. It targets existing micro and small units that are modernising, rather than new units.

• Rate: 6% subsidy in C and D category blocks; 5% in A and B category blocks.
• Cap: up to Rs 10 lakh per year.
• Period: 3 years.
• Loans covered: term loans for plant and machinery sanctioned after 1 January 2021 but before 31 December 2025.
• Eligibility: all existing micro and small units anywhere in the state that have filed URC and HUM. Only technologies approved by the Government of India under the central CLCSS qualify, appraised by HSIIDC or SIDBI, and the unit must furnish a SIDBI or NABARD certificate confirming CLCSS coverage.

SCLISS explicitly excludes replacement of existing equipment with the same equipment, upgrades using fabricated or second-hand machinery, and any foreign currency term loan, multiple loan or transferred loan. Units that applied under the central CLCSS but could not get the capital subsidy because of a revision by the Government of India are still eligible under SCLISS on its own terms.

The practical difference: the Interest Subsidy Scheme is for putting up a new unit or expanding one, SCLISS is for replacing old machinery with approved new technology. SCLISS also reaches A and B blocks, which the Interest Subsidy Scheme does not.

Why claims get rejected, and how to avoid it

• Deadline missed. The notification is unambiguous that an enterprise forfeits its entitlement if a complete claim is not filed within 3 months of the financial year close. This is the single largest cause of loss.
• Penal interest on the loan account. The bank certificate must confirm that no penal interest was charged. Clear any overdue instalment before asking for the certificate.
• URC or HUM not filed. Both registrations are required. Filing only Udyam and skipping the Haryana Udhyam Memorandum stalls the file.
• Unit not in production at disbursement stage. Subsidy is not released to a closed unit, even if it was producing when the claim was filed.
• Restrictive list item. Check the current restrictive list before investing.
• Missing UDIN on the Chartered Accountant certificate.
• Loan sanctioned before 1 January 2021, which falls outside the scheme window entirely.

Delay can be condoned. The Director or Director General, MSME can condone a delay of up to 3 months beyond the prescribed time limit, and the Administrative Secretary, Industries and Commerce can condone up to 6 months, but only where the authority is satisfied by substantial evidence, documents or arguments explaining the late submission.

Sanctioning authority, appeals and penalties

Sanction. The Additional Director, MSME sanctions subsidy up to Rs 10 lakh. The Director or Director General, Micro, Small and Medium Enterprises sanctions above Rs 10 lakh and up to Rs 20 lakh.

Appeals. An appeal against an order of the competent authority lies with the Director or Director General, MSME. An appeal against an order of the Director or Director General lies with the Administrative Secretary, Industries and Commerce, Haryana, and must be filed within 30 days of communication of the order. The Administrative Secretary's order in appeal is final.

Penalties. Where assistance is claimed on wrong facts, the applicant must refund it with compound interest at 12% per annum, faces legal action, is debarred from any further State Government incentive, and is debarred from public procurement. If the amount is not refunded it is recovered as arrears of land revenue.

Where to get help

• Directorate of MSME, Haryana, Plot No. C-3, HSVP Complex, Sector 6, Panchkula 134109 — 0172-2580710.
• Additional Director, Directorate of MSME, 0172-2580706.
• Directorate of Industries and Commerce, 30 Bays Building, Sector 17, Chandigarh, 0172-2701344.
• District MSME Centre in your district. The first point of contact, since the Joint Director or Deputy Director there scrutinises and inspects your claim.
• Email the Directorate of MSME at info-msme@hry.gov.in.

Scheme notifications for the Interest Subsidy Scheme and SCLISS are published in full on the Haryana Enterprises and Employment Policy 2020 page at msme.haryana.gov.in. Read the notification for your claim year before filing, because the Administrative Secretary, Industries and Commerce is competent to issue interpretations and clarifications that change how a clause is applied.

How to check your application status

The scheme has no separate status-tracking portal or SMS alert system. Status is checked through the same online claim system and through the District MSME Centre that scrutinises the file.

1. Log in to the claim portal. Applicants file the Annexure-I claim online at haryanaindustries.gov.in with the credentials used at submission. The dashboard against your claim number shows which stage it is at: received, under scrutiny, deficiency raised, inspected, sanctioned or disbursed.
2. Watch for the deficiency email. If the Joint Director or Deputy Director at your District MSME Centre finds a gap in the file, the department communicates it in writing (by email) within 7 days of receipt, and you have 10 days to respond. If nothing is fixed in that window the claim is treated as filed on the record as-is, so check your registered email regularly rather than waiting to be called.
3. Match your timeline against the notified schedule. The service delivery standard for this scheme runs 30 working days for the letter of approval after a complete claim, 7 working days for the letter of sanction after approval, and 7 working days for disbursement after sanction. Count from the date your claim was accepted as complete (not the date you first uploaded it) if you want to know whether you are within the standard timeline or past it.
4. Call your District MSME Centre first for anything not visible online. This office holds your physical file, does the unit inspection, and is best placed to tell you exactly why a claim is sitting at a particular stage.
5. Escalate to the Directorate of MSME, Haryana at 0172-2580710, or to the Additional Director, Directorate of MSME at 0172-2580706, if the District MSME Centre cannot resolve the delay or if the claim has crossed the 30+7+7 working-day standard without movement.
6. Email as a written follow-up. Send a status query to info-msme@hry.gov.in referencing your claim number, Udyam Registration Certificate number and the financial year claimed, so the reply can be tracked against your specific file rather than a verbal call.

There is no fixed calendar date by which a decision is guaranteed. What you can verify is whether your claim is still within the 30 working day approval window, the 7 day sanction window, or the 7 day disbursement window that follows a complete filing, and to press your District MSME Centre or the Directorate once any of those windows has passed.