The Interest Subvention Scheme indeed boosts the growth of MSMEs in India. Further with the inclusion of co-operative banks, it widens the access to credit for the MSMEs. This in turn also leads to growth in Co-operative Banking Sector because even these banks have a smaller customer base.

Is subvention plan a good option?

For a homebuyer subvention scheme can undoubtedly be beneficial for people who want to avoid the burden of EMIs as they are staying on rent and their income is limited. But there is a catch to it and people must not go for it blindfolded as most of the time they are duped by the manipulative real estate developers.

How does interest subvention scheme work?

A Subvention Scheme is a legal agreement made between the buyer, the seller, and then the finance company providing the home loan. In a subvention scheme, the buyer doesn't have to pay any amount in the form of interest until an agreed period of time; this time period is mentioned under the contract terms.