Scheme for assistance for Start Ups/ Innovation: Interest Subsidy
By Industries and Mines Department, Government of Gujarat
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Quick Answer
Gujarat's 'Scheme for Assistance for Start Ups/ Innovation' offers an additional 1% interest subsidy (up to 9% total) on term loans for MSMEs to eligible startups with innovative ideas.
- Funding amount
- Varies
- Funding type
- Subsidy
- Application deadline
- Rolling
- Location
- Gujarat
- Registrations needed
- Udyam registration
About this subsidy
The "Scheme for Assistance for Start Ups/ Innovation" is a flagship initiative launched by the Industries and Mines Department, Gujarat, as part of the broader Gujarat Industrial Policy. This particular component focuses on providing crucial financial support through an interest subsidy to startups. Designed to bolster economic growth, the scheme aims to stimulate job creation, enhance competitive landscapes, and drive the introduction of next-generation solutions across various sectors. The program is specifically targeted at innovative startups that require term loans for their business operations.
By subsidizing interest payments, the Gujarat government seeks to reduce the financial burden on emerging businesses, encouraging them to invest in innovation and expand their operations. This makes capital more accessible and affordable for startups, fostering a supportive ecosystem for technological advancement and entrepreneurial ventures within the state. The scheme underscores Gujarat's commitment to nurturing a vibrant startup environment and positioning itself as a leader in industrial and technological innovation.
Eligibility
See if you're eligible
Full eligibility criteria — entity type, stage, sector, founder profile and registration requirements — plus your fit for this program. Sign up to view.
Subsidy providers
The Industries & Mines Department (IMD) of the Government of Gujarat is the state department that makes industrial and MSME policy. Its executive arm, the Industries Commissionerate, implements those policies, both the state's and the central government's, and runs the Startup…
Learn moreBenefits & Funding
What You Get
The program provides a significant financial advantage to eligible startups by offering an additional 1% interest subsidy on their term loans. This subsidy effectively reduces the interest burden, capping the maximum effective interest rate at 9% on term loans availed under the provisions of the scheme for assistance to MSMEs. This reduction in the cost of borrowing frees up valuable capital for startups to invest in growth, research and development, or operational expenses. While the underlying term loan is repayable, the subsidy itself is a non-repayable benefit that directly supports the startup's financial health, making it easier to manage debt and pursue innovative projects. The benefit helps innovative startups access and afford growth capital without the burden of high interest rates.
- Disbursement
- Reimbursement
- Bootstrap friendly
- Yes
Timelines & Process
Applications
Rolling basis
Application Process
- 1
Register on Portal
Visit the Startup Gujarat online portal and register an account using your email ID.
You - 2
- 3
- 4
- 5
How to apply
Four steps from draft to disbursement — one action each.
- 1
See the questions before you start
Download every question this programme's application form asks, so you can prepare your answers offline before opening the portal.
- 2
Line up your documents
Keep every document from the checklist ready in one folder. Missing docs are the #1 reason applications get bounced.
- 3
Submit on the official portal
Use the official application link and verify all details before final submission.
- 4
Follow up
Reach out 5–7 days after submitting to confirm receipt and ask about the review timeline.
Program templates & documents
Files the program publishes for applicants — download these and apply in the prescribed format.
Frequently Asked Questions
What is the primary benefit of the Interest Subsidy scheme?
The primary benefit is an additional 1% interest subsidy on term loans, reducing the effective interest rate paid by eligible startups to a maximum of 9% under the provisions of MSME assistance schemes. This lowers the cost of borrowing for innovative businesses.
Who is eligible to apply for this scheme?
Any individual or group with an innovative idea or concept, recommended by an approved Nodal Institution, is eligible. Startups already benefiting from the Student Startup and Innovation Policy (SSIP) are also welcome to apply. The scheme is sector-agnostic, open to all branches of science, technology, engineering, agriculture, and healthcare.
Are there any sector-specific restrictions for this scheme?
No, the scheme is sector-agnostic, meaning it is open to startups across all sectors and branches of science, technology, engineering, agriculture, and healthcare. Innovation is the key criterion, regardless of the industry.
How do I apply for the Interest Subsidy?
Applications are submitted online through the Startup Gujarat portal. You must first register an account, then complete the common application form upon login. After that, navigate to the 'Apply Now' section on your dashboard, select the specific Interest Subsidy scheme, and fill in the required application details. You can also contact the Startup Gujarat Cell for assistance.
What is the duration of the scheme?
The umbrella 'Scheme for Assistance for Start Ups/ Innovation' is effective from August 7th, 2020, to August 6th, 2025. This component of the scheme operates within this overall validity period.
Is MSME registration required for this scheme?
Yes, as the interest subsidy is specifically provided for term loans under the provisions of schemes for assistance to MSMEs, it implies that the applicant startup must have MSME registration to be eligible for the underlying loan and subsequently for this subsidy.
Sources
Data on this page is compiled from official program and provider references.
