# What interest subvention does ADEETIE give, and what rate will my factory actually pay?

Canonical: https://senseible.earth/answers/adeetie-interest-subvention-rate-msme

ADEETIE cuts the interest on an energy efficiency loan by 5 percentage points for micro and small enterprises and 3 points for medium enterprises. The scheme keeps your net rate at 2 percent or more, so a loan already near that floor gets a smaller cut.

## The two rates

- Micro and small enterprises: 5 percent interest subvention on the eligible loan amount.
- Medium enterprises: 3 percent interest subvention.
- The net borrowing rate after subvention cannot fall below 2 percent.

## What the subvention applies to

- Loans of Rs 10 lakh to Rs 15 crore from banks or financial institutions.
- Up to 75 percent debt funding of the project cost.
- Projects that achieve and keep at least 10 percent energy savings; the subvention is paid each year the saving holds.

## How the money reaches you

You pay your lender as usual. The lender files subvention claims with BEE, which disburses through a nodal bank every quarter. Empanelled auditors verify the actual savings first, so a project that slips below 10 percent puts that year's subvention at risk.

## Example (illustrative)

- Small unit, Rs 1 crore loan at 10 percent: subvention 5 points, net about 5 percent
- Same loan at 6 percent: 5 points would leave 1 percent, so the cut stops at the 2 percent floor (4 points)

Illustrative rates. Your lender and the scheme rules decide the eligible amount.

## What Senseible does here

Senseible keeps a dated, fingerprinted record of every electricity bill and fuel invoice before and after the project, which is the evidence trail you need when the yearly 10 percent saving is checked.

- [ADEETIE scheme explained](https://senseible.earth/climate-intelligence/adeetie-scheme)
- [ADEETIE application steps](https://senseible.earth/answers/adeetie-application-steps)
- [SIDBI energy efficiency loans](https://senseible.earth/answers/sidbi-energy-efficiency-loan-for-msme)

Sources: [BEE, ADEETIE scheme page](https://beeindia.gov.in/show_content.php?lang=1&level=1&ls_id=234&lid=384), [BEE, ADEETIE scheme booklet (clusters, technologies, process, FAQs)](https://beeindia.gov.in/WriteReadData/RTF1984/1772790517.pdf)

Last reviewed 2026-10-23.