Back to Schemes
Business & Entrepreneurship; Banking,Financial Services and Insurance

Back Ended Interest Subsidy (BEIS)

"Back Ended Interest Subsidy" by the Govt of Tamil Nadu, is introduced with the objective of reducing financial burdens of all new micro and small manufacturing enterprises who have already availed loans from banks/ other government organizations by assisting them through a subsidy on term loans.

Authority

State/ UT

Region

Tamil Nadu

Status

Verified 2026

Updated

March 2026

What you get

- Subsidy of 5% on term loans subject to a maximum of ₹ 20,00,000 is given for a period of 5 years to all new micro and small manufacturing enterprises for term loans up to ₹ 2,00,00,000 obtained for Credit Guarantee Fund Trust Scheme (CGTMSE). | - Subsidy of 5% on term loans subject to a maximum of ₹ 25,00,000 is given for a period of 5 years to all new micro and small manufacturing enterprises for term loans up to ₹ 5,00,00,000 obtained for technology up-gradation / modernization. | - The maximum amount of BEIS payable per loan shall be ₹ 10,00,000 only on loans taken up to ₹ 1,00,00,000. | Mode of Payment | Interest subsidy shall be reimbursed once in three months on a quarterly basis to the financial institutions.

Who can apply

Micro and Small Enterprises who have availed of term loan under Technology upgradation/modernization schemes, National Equity Funds Scheme (Renamed as Micro / Small Enterprises Funding Scheme), Scheme for ISO Certification / R & D under NSIC -SIDCO Consortium and Credit Guarantee Fund Trust Scheme.; New Enterprises that have set up their facilities, or existing Micro, Small, and Medium Enterprises, which upgrade their existing plant and machinery with state-of-the-art technology, with or without expansion, by induction of well-established and improved technologies in specified sub-sectors / products as listed in the guidelines on Credit Linked Capital Subsidy Scheme (CLCSS) Scheme of Government of India.

Required Paperwork

  • Aadhaar Card
  • PAN Card
  • Income Certificate
  • Residence Proof (Domicile)

Common Questions

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

Eligible schemes include Technology Upgradation/Modernization, National Equity Fund, ISO Certification/R&D under NSIC-SIDCO Consortium, and Credit Guarantee Fund Trust Scheme.

What is the application timeline for the BEIS scheme?

The application timeline for BEIS is not explicitly mentioned. Please refer to the scheme guidelines for specific details.

Are there any exclusions for enterprises applying for BEIS?

The scheme guidelines do not provide information on exclusions. Refer to the detailed scheme documentation for specific exclusions.

How often is the interest subsidy reimbursed under BEIS?

Interest subsidy is reimbursed once in three months on a quarterly basis to the financial institutions.

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

The maximum BEIS payable per loan is [?]10,00,000 for loans up to [?]1,00,00,000.

How much subsidy can a micro-enterprise receive under BEIS for term loans obtained through CGTMSE?

Micro-enterprises can avail a 5% subsidy, capped at [?]20,00,000, for a 5-year period on term loans up to [?]2,00,00,000 through CGTMSE.

What is the objective of the Back Ended Interest Subsidy (BEIS) scheme?

BEIS aims to alleviate financial burdens for new micro and small manufacturing enterprises by providing a 5% subsidy on term loans for a period of 5 years.

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

The government does not cover penal interest or charges for belated payments; only the interest subsidy is considered under BEIS.

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

Yes, the unit should be in operation during the claimed period for interest subsidy under the BEIS scheme.

Can existing Micro, Small, and Medium Enterprises apply for BEIS if they upgrade their plant and machinery?

Yes, existing enterprises upgrading their plant and machinery with advanced technology are eligible for BEIS under certain conditions.