Banglashree for Micro, Small and Medium Enterprises: Interest Subsidy on Term Loan (IS)

The Interest Subsidy on Term Loan (IS) is a component of the Banglashree for Micro, Small and Medium Enterprises initiative, introduced by the Department of Micro, Small and Medium Enterprises and Textiles, Government of West Bengal. It has been in operation from April 1, 2020, and will continue until March 31, 2025, with the aim of strengthening the MSME sector in the state.

The Banglashree scheme as a whole seeks to provide fiscal incentives that encourage the establishment of new Micro, Small, and Medium Enterprises. Its focus is on promoting balanced growth of MSMEs across West Bengal, fostering an ecosystem that makes efficient use of resources, creates fresh employment opportunities, and broadens the state's industrial base to enhance its standing in the national MSME landscape.

Under the Interest Subsidy sub-scheme, eligible MSMEs receive direct financial support on their annual interest obligations. This applies to term loans obtained from Commercial Banks, Cooperative Banks, RBI-approved Scheduled Banks, Regional Rural Banks (RRBs), and Central or State Financial Institutions. By reducing the interest burden, the scheme aims to improve the financial health and operational performance of approved projects, supporting the wider objectives of economic expansion and job generation in the manufacturing sector.

1. Register on the Portal: Go to the Shilpasathi Portal (silpasathi.wb.gov.in) and select ‘Apply Online’. If you are a new user, choose ‘Create New’. Pick your Applicant Type (Industry/Business/Commercial/Charitable Society/Govt. entity) and provide your Registration Number. Complete all required fields on the ‘User Registration’ page and select ‘Register’.
2. Log In and Access Services: Return to the Shilpasathi Portal, click ‘Apply Online’, and sign in with your username and password or through OTP. This will take you to your user dashboard.
3. Start an Application: On the dashboard, choose ‘ALL SERVICES’ and pick 'MSME Incentive' from the options. Select ‘Create CAF’ to obtain your Common Application Form (CAF) ID, then click ‘Apply Online’ to continue.
4. Complete Eligibility and CAF: Fill out the "eligibility form" and save it; you will then be redirected to the common application form (CAF). Provide all mandatory details in the CAF, making sure everything is correct, and click “Update and Continue” to review the form.
5. Review and Save Application: After submitting the CAF initially, you will be sent to the “Dashboard” to check the application status. Click “Click to Proceed” to keep working on your application, saving any updates as you go.
6. Fill Online Form - A: Select "Preview" to do a final check of the CAF before submission. Then, click "Go to Application" to complete the "Online Form - A", which pertains to the subsidy request.
7. Provide Subsidy Details: Go to the "APPLY SUBSIDY" section to see year-wise subsidy items for your application. When done, click "SAVE". Next, move to the "FILL UP SUBSIDY" tab to enter detailed year-wise subsidy information, using "Add More" for multiple years or year-wise splits.
8. Upload Documents and Submit: Upload all necessary documents. Carefully review all entered details and uploaded files. Click “VERIFY & SUBMIT”, tick the declaration box, and then click “Submit Application”.
9. Get Reference Number: Once Form-A is submitted, you will receive an application reference number. Keep this number safe to track your application's progress on the portal.

Applications under the Interest Subsidy on Term Loan scheme are handled via the Shilpasathi Portal. The evaluation begins with a detailed check of the applicant’s eligibility, using the information and documents provided. A review committee or panel from the Department of MSME and Textiles, Government of West Bengal, or a designated agency, then examines whether the enterprise satisfies all conditions—such as its MSME classification, engagement in manufacturing, the date commercial production began, and whether the term loan comes from a recognised financial institution. Those whose submissions match the scheme’s requirements are granted the subsidy.