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A new service business in Haryana that is paying interest on a term loan or working-capital loan may now have access to some relief, provided it falls within the categories covered by the State Government's new scheme.
The notification regarding the interest subvention scheme was issued by the Industries & Commerce Department, Haryana, on 9 September 2026 for setting up new Micro and Small Enterprises in the services sector. This scheme has been included in the implementation of the RAMP Program by Haryana.
This scheme provides relatively specific financial aid in terms of 2% interest subvention, which is capped at 5 lakhs per annum of term loan or loan for working capital requirements. However, it does not necessarily mean that every MSE will get 5 lakhs. It should satisfy certain criteria, fill out the application form, and pass through the scrutiny process.
The scheme is meant to reduce a part of the interest cost borne by eligible new service businesses in Haryana.
"Interest subvention" means that the government supports a specified portion of the interest burden. The underlying loan does not disappear. The borrower remains responsible for repayment to the bank, financial institution, or NBFC.
Under this scheme, eligible service-sector MSEs may receive support calculated at 2%, subject to the annual ceiling of 5 lakh rupees and the other conditions written into the notification.
It should not be confused with:
The nature of the business, date of commencement, loan date, lender, Udyam status, and past subsidy claims all matter.
The notification places the scheme within Haryana's Strategic Investment Plan under the RAMP Programme.
According to the notification, RAMP was launched by the Government of India with World Bank support to improve MSME performance. The programme focuses on areas such as market and credit access, stronger institutions, better Centre-State coordination, delayed-payment issues and greening of MSMEs.
For Haryana, this particular scheme uses that broader programme to support service-sector Micro and Small Enterprises through interest relief.
The stated objective is to address financing challenges faced by smaller service businesses.
The notification specifically refers to:
The practical benefit is easy to understand. A newly established service business may need external finance before its operations stabilise. Even a partial reduction in interest cost can ease some of that pressure. Whether a particular business receives the benefit, however, depends on the scheme conditions.
The scheme offers 2% interest subvention, with assistance capped at 5 lakh rupees per financial year.
That headline figure needs to be read carefully.
The 2% is the Rate of Interest Support
The scheme does not offer 2% of turnover, profit, or investment.
It relates to interest on the qualifying loan.
Annexure II reinforces this by requiring the lender to certify the loan, the applicable interest, and the amount that works out at 2% for the relevant period.
5 Lakh rupees is the Upper Limit
5 lakh rupees is the maximum annual amount. It is not a flat payout.
If the admissible interest support is lower than 5 lakh rupees, the business cannot claim the ceiling merely because it is eligible for the scheme.
Only One Loan Category Can Be Used
The notification gives a choice between:
Assistance cannot be claimed on both.
For businesses with more than one borrowing arrangement, this point needs to be checked before preparing the claim.
The broad eligible category is new service-sector Micro and Small Enterprises in Haryana.
But that description alone is not enough. The notification adds several conditions.
Basic Eligibility Conditions
A business should check whether:
Several of these checks are factual. A business either meets them or it does not. That is why an eligibility review should normally be completed before the application form is filled.
How Does the Notification Define a Micro Enterprise?
For this scheme, the notification describes a Micro Enterprise as one where:
It also refers to amendments made by the Government of India under the Micro, Small and Medium Enterprises Development Act, 2006 from time to time.
How Does the Notification Define a Small Enterprise?
A Small Enterprise is described as an enterprise where:
The notification again makes this subject to Government of India amendments under the MSMED Act.
Applicants should therefore check the classification actually applicable when the claim is being made rather than relying on an old internal classification.
One date matters repeatedly in this scheme: 1 April 2025.
The notification defines a "new enterprise" as an enterprise that commenced commercial production or operations on or after 1 April 2025.
This is not the date on which the scheme itself was notified. The scheme notification came later, on 9 September 2026.
That distinction matters because businesses need to check both:
The notification gives an express list of service activities.
| Service Activity | Position Under the Scheme |
| Health Care | Covered |
| Tourism | Covered, except stand-alone hotel/restaurant facilities |
| Skill Development | Covered |
| Training-cum-Incubation Centres | Covered |
| Information Technology | Covered |
| Bulk Courier Services | Covered |
| R&D Centres | Covered |
| Testing Laboratories | Covered |
| Engineering & Design Services | Covered |
| Equipment Rental & Leasing | Covered where related to construction and industry |
| Equipment Maintenance & Repair | Covered |
| Environmental Services | Includes sewage/waste disposal/management |
| Entertainment Parks | Covered, except Cinema Halls |
| Other Services | May be included later if notified by the State Government |
The eligible list appears in the scheme's definition of a service enterprise.
Are Trading Businesses Eligible?
No.
Trading units are expressly excluded.
A business should therefore not assume that Udyam Registration or Micro/Small classification is enough by itself.
What About Stand-Alone Hotels and Restaurants?
The tourism category is included, but the notification specifically excludes stand-alone hotel/restaurant facilities from that entry.
A hospitality business should examine its exact activity before preparing a subsidy claim.
Are Cinema Halls Covered?
No, not under the Entertainment Parks entry.
The source includes Entertainment Parks but excludes Cinema Halls.
Can Haryana Add More Services Later?
Yes.
The notification says other service enterprises may also be included if the State Government notifies them from time to time.
Two types of business borrowing are recognised.
Term Loan
An eligible term loan can form the basis of the claim where all other conditions are met.
This may be relevant where a business has borrowed for business assets or longer-term operational requirements, depending on its loan arrangement.
Working-Capital Loan
A qualifying working-capital loan may also be considered.
This is particularly relevant for service businesses that rely on borrowed funds for recurring business expenditure.
The scheme, however, does not allow support for both categories together.
Which Lenders Are Covered?
The notification refers to loans taken from:
The general guidelines also indicate that the loan should be in the name of the firm and used for business operational purposes.
The scheme does not look only at the business commencement date.
The loan also has to satisfy the prescribed date condition.
The notification says that a service enterprise whose term loan or working-capital loan was sanctioned/disbursed on or after 1 April 2025 may be admissible under the scheme.
It also provides a specific exception-like situation: where a term loan was sanctioned before 1 April 2025 but disbursed after 1 April 2025, the applicant can still be eligible.
This makes the disbursement date particularly important.
Businesses should therefore review the original sanction letter and bank disbursement records rather than relying on memory or accounting entries.
| Event | Timeline | Why It Matters |
| New enterprise condition | Commercial operations on or after 1 April 2025 | Used to determine whether the business is "new" |
| Loan eligibility date | Relevant sanction/disbursement on or after 1 April 2025 | Used to test financing eligibility |
| Notification date | 9 September 2026 | Scheme notified from this date |
| Application claim period | Within 3 months from close of relevant financial year, subject to the notification wording | Missing the period may affect entitlement |
| Deficiency communication | Within 7 days | Applicant may receive a portal notice |
| Deficiency correction | 10 days | Applicant must respond quickly |
| Approval/rejection | Within 30 working days from application | Stated processing period |
| Appeal | Within 30 days from communication of order | Available against HOD order |
| Delay condonation by HOD | Up to 3 months after prescribed limit | Not automatic |
| Delay condonation by Administrative Secretary | Up to 6 months after prescribed limit | Requires satisfactory reasons/evidence |
One part of the notification deserves special attention because the wording is not consistent.
Under the section dealing with Quantum of Assistance, the benefit is described as available for three years from the notification or until the validity of the RAMP Programme in Haryana, whichever is later.
But under Commencement and Applicability, the notification says the scheme will remain operational for three years from notification or until the validity of RAMP, whichever is earlier.
Those two phrases can produce different results.
Therefore, companies cannot conclude a final date of closure merely on the basis of a single clause. In case the validity of the scheme is related to the claim, then any formal statement issued by the Government of Haryana /Industries & Commerce Department will be relevant.
The claim is not open-ended.
The notification states that an enterprise can forfeit its entitlement if it does not submit a complete claim within three months of the closing of the financial year for which the incentive is claimed or from the notification date, whichever is later.
The word "complete" is important.
Submitting only the online form without the required supporting records may not be enough if the application remains deficient.
The process is laid down in the notification itself.
Step 1: Check Whether the Business Fits the Scheme
Before filing, review:
This first check can prevent an ineligible or conflicting claim from being filed.
Step 2: Fill the Prescribed Application
The application form in Annexure I needs to be filled in by the applicant. This form will require the following particulars: details of the trade, Udyam particulars, loan particulars, and amount of subsidy claimed.
Step 3: Collection of Supporting Documents
The required supporting documents need to be collected.
A bank certificate and CA certificate form part of this documentation.
Step 4: Submit the Claim Online
The application is to be filed through the web portal of the Directorate.
The notification text does not expressly provide the portal URL.
Step 5: Wait for Scrutiny
The office of the HOD, Directorate of Micro, Small & Medium Enterprises, Haryana, examines the application and recommends approval or rejection after review.
Step 6: Respond if a Deficiency Is Raised
Where the Directorate identifies a deficiency, it is to be communicated through the portal within 7 days.
The applicant then has 10 days to correct it.
If the deficiency is not removed within the prescribed time, the claim is to be closed, and the applicant will not be entertained again for that claim.
Step 7: Approval or Rejection
The notification states that the application is to be approved or rejected within 30 working days from the date of application.
This is the timeline written in the scheme; it should not be read as a promise that every filed application will result in approval.
The document list is not generic. Annexure I identifies the papers that have to accompany the application.
| Document | Why It Is Required | Status |
| Latest Udyam Registration Certificate | Confirms MSME registration and category | Required |
| Incorporation/Partnership/LLP/Co-operative registration proof | Confirms legal constitution | As applicable |
| CLU/NOC | Shows relevant approval | If applicable |
| Board Resolution/Power of Attorney | Confirms authorised signatory | As applicable |
| Loan sanction letter | Establishes financing details | Required |
| Declaration regarding other interest subvention | Checks duplication of benefit | Required |
| Bank/FI/NBFC Certificate – Annexure II | Confirms loan and interest details | Required |
| CA Certificate – Annexure III | Confirms investment details | Required |
| GST Return/Audited Balance Sheet | Supports financial information | If applicable |
| Non-default/NPA undertaking | Confirms repayment status | Required |
Annexure I is the main claim form.
It seeks details such as:
Applicant and Business Details
MSME and Operational Details
Loan Details
Because these particulars are capable of being cross-checked, applicants should make sure the form matches the bank records, Udyam certificate, and financial statements.
Annexure II requires a certificate from the concerned bank or financial institution. The certificate is designed to verify the financial details behind the claim. It covers matters such as:
This is why the applicant should coordinate with the lender before the claim deadline rather than leaving the bank certificate until the last moment.
Annexure III requires a Chartered Accountant to certify the enterprise's investment details.
The format refers to:
The Chartered Accountant verifies the financial information. The CA does not sanction the government incentive.
Annexure IV contains the applicant's undertaking and declaration.
It is to be submitted on non-judicial stamp paper and sworn before a Notary Public or First-Class Magistrate, as specified in the notification.
The applicant declares, among other things, that:
The declaration also refers to a refund with 12% compound interest per annum where the circumstances specified in the undertaking arise.
The scheme does not simply create an unlimited pool of assistance.
Complete applications are prioritised based on their date of submission on the portal, and the benefit remains subject to availability of budget.
This gives businesses a practical reason to prepare their records early.
Waiting until the last permissible date may leave less time to deal with a missing bank certificate or another document issue.
Once the application is filed, the Directorate examines the claim rather than immediately releasing the benefit.
The office of the HOD is responsible for scrutiny and for recommending approval or rejection.
The process can therefore involve:
The notification further says an applicant should not normally be asked to submit documents other than those specified in Annexures I, II and III unless additional material is needed to establish the genuineness of the claim.
Applicants need to watch the portal after filing.
The scheme gives a relatively short period for correcting errors.
Deficiency Notice
A deficiency, if any, is to be communicated on the web portal within 7 days.
Time to Correct It
The applicant gets 10 days to rectify the points raised.
Failure to Respond
If the deficiency is not removed within that period, the claim is to be closed.
This makes post-filing follow-up almost as important as preparing the initial application.
The HOD, Directorate of Micro, Small & Medium Enterprises, Haryana, is the competent authority for sanction of assistance after completion of the required formalities.
The bank only verifies the loan information. A consultant may assist with documentation. Neither performs the government's sanctioning function.
The Administrative Secretary, Industries & Commerce Department, Haryana is authorised to issue interpretations or clarifications and remove difficulties relating to the scheme.
That provision becomes especially relevant because of the inconsistent "whichever is earlier/later" wording relating to scheme duration.
Can an Applicant Appeal a Rejection?
Yes.
An applicant can challenge an order passed by the HOD before the Administrative Secretary, Industries & Commerce Department, Haryana.
The appeal has to be filed within 30 days from the date the order is communicated.
The Administrative Secretary's appellate order is stated to be final.
The scheme does provide some room for condonation of delay, but late filing should not be treated casually.
Delay Up to Three Months
The HOD, Directorate of MSME, Haryana may condone delay up to three months after the prescribed filing period.
Delay Up to Six Months
The Administrative Secretary can condone delay up to six months after the prescribed period.
This longer condonation depends on the authority being satisfied with the reasons for late submission, supported by substantial evidence, documents or arguments.
Condonation is therefore discretionary, not automatic.
Not for the same component in the manner restricted by this notification.
The scheme says an applicant who has already applied under it cannot migrate to another scheme for the same component.
It gives the example of an enterprise taking benefit under this scheme for one year and later seeking to move to the Interest Subsidy Scheme under HEEP 2020 or another industrial policy. Such migration is not permitted under the stated rule.
Businesses comparing more than one incentive should therefore assess the options before committing to a claim.
The notification also blocks duplicate similar assistance.
An applicant under this scheme cannot claim a similar benefit under another State or Central Government scheme.
A declaration has to be submitted confirming that such similar assistance has not been taken. If verification shows otherwise, the entire assistance may have to be refunded.
This should not automatically be read as a ban on every other government incentive. The issue is overlapping or similar benefit for the relevant component.
This is one area where the notification uses strict language.
If assistance has been claimed on the basis of wrong facts, the scheme provides for consequences that can include:
Applicants should therefore check all figures, loan details, and declarations before submission.
Before filing, a business should be able to answer the following questions clearly:
| Check | What the Business Should Confirm |
| Enterprise category | Is it Micro or Small? |
| Business activity | Is it an eligible service activity? |
| Trading activity | Is the business excluded as a trading unit? |
| Start of operations | Did commercial operations begin on or after 1 April 2025? |
| Loan date | Does sanction/disbursement satisfy the scheme? |
| Lender | Is the loan from an eligible institution? |
| Udyam | Is the certificate valid and updated? |
| Operational status | Is the business currently operating? |
| Loan account | Is it free from default/NPA status? |
| Other incentives | Has similar interest support already been claimed? |
| Approvals | Are NOC/CLU/CTO available where applicable? |
| Bank certificate | Can Annexure II be obtained? |
| CA certificate | Can Annexure III be completed? |
| Deadline | Is the claim within the prescribed period? |
The value of the scheme lies mainly in reducing part of the financing cost.
For a qualifying business, it may help with:
Lower Eligible Interest Burden
A 2% subvention can reduce part of the interest cost attached to the qualifying loan.
Support During the Early Business Stage
Because the scheme focuses on new enterprises, the benefit may be particularly relevant when a service business is still building revenue and managing fixed financial commitments.
Coverage of Working-Capital Borrowing
The scheme is not restricted only to long-term finance. Eligible working-capital borrowing is also recognised.
Support for Formalised Businesses
Udyam Registration, proper bank records, and documented financial information are central to the claim. That naturally favours businesses maintaining organised records.
These benefits remain conditional. The scheme does not guarantee profitability, revenue growth, or approval of the full 5 lakh rupees amount.
The headline benefit can look attractive, but several conditions can change the outcome of a claim.
Businesses should pay particular attention to:
The scheme is therefore better approached as a documented financial claim rather than a simple subsidy form.
New Service-Sector MSEs
These businesses are the main intended beneficiaries.
For them, the scheme can reduce part of the cost of borrowing, but eligibility depends on both the business and the loan meeting the notified conditions.
Businesses With Term Loans
If the dates of the loan and disbursement fall under the scheme, then companies funding their long-term requirements by term loans could also be eligible for assistance under it.
Businesses using Working Capital
The introduction of working capital loans has made the program more practical to use, particularly by businesses whose ongoing expenses necessitate financial support from banks.
Trading Businesses
Trading units remain outside the scheme.
That exclusion needs to be identified at the beginning rather than after documents have already been prepared.
Businesses Already Receiving Interest Support
These applications require a further check, as there may be some other State/Central Government benefit scheme which might clash with the said scheme.
Banks/NBFCs
The lenders themselves do not approve the schemes; however, they are important for making a case, as Annexure II relies on them.
Some parts of the scheme are straightforward. Others may need closer checking.
Determining Whether a Service Is Covered
The listed activities are specific. A business offering a mixed service model may need to determine where its actual activity fits.
Checking Loan Dates
The scheme makes a distinction between sanction and disbursement. That can affect a business whose loan was approved before 1 April 2025 but released later.
Getting the Bank Certificate on Time
The bank certificate contains several figures and confirmations. Applicants may need time to obtain it from the concerned branch.
Avoiding Conflicting Subsidy Claims
Businesses using more than one government scheme should compare the benefits before signing the non-availment declaration.
Responding Quickly to Deficiencies
Ten days is not a long period if the missing item has to come from a bank, accountant, or government authority.
Scheme-Duration Ambiguity
The "whichever is earlier" and "whichever is later" difference should be watched for an official clarification.
A practical approach would be:
The order matters because an eligibility problem found at the start is much easier to deal with than one discovered after the application has been filed.
Applying for a government incentive often involves more than uploading a few documents. In this scheme, the enterprise category, service activity, start date, loan records, Udyam details, and earlier subsidy claims all need to fit together.
Corpseed can provide MSME subsidy consultancy services to businesses that need support in checking these requirements and preparing a structured application.
1. Scheme Eligibility Assessment
Corpseed can review whether the business appears to meet the basic scheme conditions, including:
This helps identify an eligibility issue before the application reaches the filing stage.
2. MSME Subsidy Application Support
Through MSME subsidy application support, Corpseed can assist with organising the prescribed application and supporting information according to the scheme.
The service can include a review of whether the details entered in Annexure I match the underlying records.
Approval remains entirely with the competent Haryana Government authority.
3. Subsidy Documentation Assistance
The claim depends on several supporting records.
Corpseed can assist businesses in reviewing:
The purpose is to reduce avoidable mismatches before filing.
4. Bank Certificate Coordination
The Annexure II certificate has to come from the concerned bank, financial institution, or NBFC.
Corpseed can help the applicant understand the prescribed information so that the business knows what needs to be requested from the lender.
5. CA Certificate Support
Annexure III requires certification from a Chartered Accountant.
Corpseed can assist the business in organising the underlying information needed for the certificate, while the certification itself remains the responsibility of the CA.
6. Government Subsidy Consultancy
Businesses already using another government incentive may need to understand whether the benefit overlaps with the Haryana interest subvention scheme.
A government subsidy consultancy review can help businesses compare the relevant conditions before making a declaration or choosing between similar incentives.
7. Deficiency Response Support
In the event that the Directorate puts up the deficiency notice on the website, Corpseed can help the applicant understand the problem and organize the response as required.
This will be especially useful when the deficiency is in regard to loan documents, certificates, or conflicting information on different documents.
8. Ongoing MSME Compliance Support
The business will require assistance with the MSME record-keeping, Udyam information, and the documentation for the government incentives as well.
Corpseed's MSME incentive consultancy and related compliance support can be used where these services match the business's actual requirements.
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