The modifications to the scheme include settlement of claims based on internal or concurrent auditor certificate and submission of statutory auditor’s certificate once by June 30, 2020; and acceptance of claims in multiple lots for a given half year by eligible institutions.

The government on Monday approved changes in the interest subvention scheme guidelines for micro, small and medium enterprises (MSMEs) to help them get 2% interest subsidy on loans after it emerged that very few businesses had benefited from the scheme announced by PM Narendra Modi over a year ago.

“It is expected that the modifications in the scheme guidelines will lead to fulfilment of objectives of the scheme; to increase productivity in MSMEs through access to credit at reduced cost,” MSME minister Nitin Gadkari said in a statement, adding that the implementation of the scheme is being closely monitored.

TOI had recently reported how small businesses had received a mere Rs 30-40 crore earmarked as 2% subsidy, a year after the government announced the scheme for which Rs 625 crore has been allocated over a two-year period.

The modifications to the scheme include settlement of claims based on internal or concurrent auditor certificate and submission of statutory auditor’s certificate once by June 30, 2020; and acceptance of claims in multiple lots for a given half year by eligible institutions.

“Requirement of Udyog Aadhar Number (UAN) is dispensed with for units eligible for GST. Unit not required to obtain GST, may either submit Income Tax PAN or their loan account must be categorised as a MSME by the concerned eligible institutions,” an official statement said.