§1Who it is for

  • Udyam-registered MSMEs in U.T. Chandigarh with a term loan or working-capital loan

Useful if

Small Chandigarh MSMEs with a regular bank or NBFC loan.

Do not spend time on it if

Units with an NPA or overdue loan account.

§2Eligibility

  1. Valid Udyam Registration in U.T. Chandigarh on the date of application and of disbursement
  2. Loan from an Eligible Lending Institution: scheduled commercial bank, small finance bank, RRB or cooperative bank, SIDBI, RBI-registered NBFC, or other notified regulated institution
  3. Only interest for the period on or after 1 Apr 2024; older loans allowed if principal was still outstanding
  4. Loan account must be standard and regular; applicant and loan must not be defaulter or NPA
  5. Must disclose every other interest subsidy or credit-linked help from GoI or Chandigarh Administration on the same loan
  6. Unit must be in commercial operation and not closed at disbursement

§3Benefits

Not published

The guideline does not list the benefits. Ask the portal or bank before you apply — we do not make up lists.

§4Norms — pattern of assistance

  1. 3% applied on eligible outstanding principal as certified by the lender; never more than interest actually paid
  2. Penal interest, overdue charges, processing fees, guarantee fees, insurance, taxes and principal are not eligible
  3. Target: 1,000 disbursements (micro-loans) and 200 (non-micro loans)
  4. First come first served by date of complete application; Department may close intake when budget or target is used up
  5. Total help from all public sources cannot exceed actual expenditure
  6. Paid only through PFMS to the beneficiary's verified bank account
  7. Wrong information: refund with 12% compound interest (undertaking, Annexure II)

§5Documents

Tick each one as you get it ready.

Application form (Annexure I-D)

§6How to apply

  1. 1

    Apply on the Department's designated online portal within 90 days after close of the financial year, and not later than 1 March of each financial year

  2. 2

    Offline application allowed if the portal is not working

  3. 3

    Department scrutinises; deficiencies told within 7 working days; 10 working days to fix

  4. 4

    RAMP Financial Assistance Monitoring Committee (RFAMC) recommends; Director, Industries sanctions; appeal to Secretary, Industries within 30 days

§7Pros and cons

Merits

  • Covers old loans too, for interest paid from 1 Apr 2024
  • NBFC loans count, unlike many state schemes
  • Also covers working-capital loans, not only term loans

Demerits

  • Guidelines say they create no vested right; budget-capped and first come first served
  • Depends on central RAMP funds continuing (para VIII.13)

→Related schemes

Need help with Chandigarh interest subvention?

Eligibility check, DPR and application file — ask us on WhatsApp.

WhatsApp usServices

Our interestHelp is our paid service. You can also apply for the scheme yourself.

Sources

  1. Working Guidelines for Financial Assistance for MSMEs in UT Chandigarh under RAMP (Dept of Industries)

Checked on 18 October 2026. For information only — confirm with the department or bank. Spotted a mistake? Report it.