Bank Loan Processing Fee Reimbursement Scheme
Government of India
Bank Loan Processing Fee Reimbursement Scheme
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This scheme provides reimbursement of bank loan processing fees to MSMEs, reducing the upfront cost burden of accessing credit. It encourages MSMEs to seek formal banking credit by offsetting processing charges.
Key Features
Processing Fee Reimbursement
Government reimburses bank loan processing fees paid by MSMEs
Reduced Initial Costs
Lowers the barrier to accessing formal credit for small businesses
Applicable to Various Loans
Covers term loans, working capital, and other MSME credit facilities
Simple Claim Process
Easy documentation for claiming reimbursement
Financial Assistance
| Component | Assistance | Details |
|---|---|---|
| Reimbursement | Full or partial processing fee | If bank charges ₹10,000 processing fee, eligible for reimbursement |
| Eligible Loans | MSME term loans and working capital | New loans or renewals as per scheme guidelines |
| Maximum Limit | As per state/central scheme rules | Varies by implementing agency |
| Claim Timeline | Within specified period after loan sanction | Usually 90-180 days from loan disbursal |
Eligibility Criteria
Who Can Apply
Eligible Candidates
- 1Registered MSMEs with Udyam certificate
- 2Loans from scheduled commercial banks
- 3Processing fees paid as per bank norms
- 4Loan utilized for eligible business purposes
Who Cannot Apply
Ineligible Candidates
- Non-MSME enterprises
- Loans from non-banking sources
- Processing fees already waived by bank
- Loans for personal or non-business purposes
Documents Required
Udyam Registration Certificate
Mandatory
Loan sanction letter from bank
Mandatory
Processing fee payment receipt
Mandatory
Bank account details for reimbursement
Mandatory
Loan utilization certificate
Mandatory
MSME registration/business proof
Mandatory
How to Apply
Bank Branch
- 1Obtain loan from eligible bank and pay processing fee
- 2Collect processing fee receipt and loan documents
- 3Apply for reimbursement through designated portal/office
- 4Submit required documents including Udyam certificate
- 5Application verified by implementing agency
- 6Reimbursement credited to bank account