J&K Working Capital Interest Subvention 2021
By Industries & Commerce Department, Government of Jammu & Kashmir
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Quick Answer
Existing units in Jammu & Kashmir get a 5% interest subvention on working capital loans for up to 5 years, with a maximum benefit of ₹1 crore.
- Funding amount
- Up to ₹1Cr
- Funding type
- Subsidy
- Application deadline
- Rolling
- Location
- Jammu and Kashmir
About this subsidy
Existing manufacturing and service units in Jammu & Kashmir that were registered under GST before February 23, 2021 can get a 5% interest subvention on their working capital loans. This is the Working Capital Interest Subvention (WCIS) under the Jammu & Kashmir Industrial Development Scheme, 2021.
It runs for up to 5 consecutive years, and the total benefit is capped at ₹1 crore. Even if bank interest rates fall below 6%, you still pay at least 1% per annum of the interest.
Eligibility
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Full eligibility criteria — entity type, stage, sector, founder profile and registration requirements — plus your fit for this program. Sign up to view.
Subsidy providers
Provider
Industries & Commerce Department, Government of Jammu & KashmirJammu · Jammu and Kashmir · India
The Industries & Commerce Department of the Government of Jammu & Kashmir is the Union Territory's department for industrial and commercial development. Its online front door is the J&K Single Window portal, where a business registers once, applies for departmental approvals and…
Learn moreBenefits & Funding
- Amount
- Up to ₹1Cr
What You Get
Eligible existing units can receive a 5% interest subvention on their working capital loans for a maximum period of 5 consecutive years. The total financial benefit under this component is capped at ₹1 crore over these five years. This subsidy helps significantly reduce the cost of borrowing, improving cash flow and operational viability for businesses in Jammu & Kashmir. Even if bank interest rates fall below 6%, units are required to pay a minimum of 1% per annum of the interest, ensuring some financial commitment while still benefiting from the subvention.
- Disbursement
- Reimbursement
- Duration
- 61 months
- Bootstrap friendly
- Yes
Timelines & Process
Applications
Rolling basis
Selection Process
Applications are typically reviewed by a committee from the Department for Promotion of Industry and Internal Trade (DPIIT) or the relevant state industrial department, based on the submitted documentation and adherence to the eligibility criteria outlined in the Jammu & Kashmir Industrial Development Scheme, 2021. The process involves verifying the unit's existence, GST registration date, and working capital loan details to confirm eligibility for the subvention.
Application Process
- 1
Review Policy
Understand the full terms and eligibility of the J&K Industrial Development Scheme 2021.
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 Working Capital Interest Subvention scheme?
It's a component of the Jammu & Kashmir Industrial Development Scheme 2021, providing a 5% interest subsidy on working capital loans for eligible units.
Who is eligible for this subvention?
All existing units in the Union Territory of Jammu & Kashmir that were registered under GST prior to February 23, 2021.
What is the maximum benefit I can receive?
The maximum benefit under this scheme is ₹1 crore over a period of 5 years.
How long can I avail this subvention?
Eligible units can avail the subvention for a maximum of 5 consecutive years from the date of registration under the scheme.
What if the bank's interest rate is very low?
If the annual rate of interest charged by the bank falls below 6%, you will still be required to pay a minimum of 1% per annum of the interest.
Is this a grant or a loan?
This is an interest subvention, which is a form of subsidy that reduces your interest payments; it is not a direct grant or a repayable loan itself. You still need to secure a working capital loan from a bank.
Sources
Data on this page is compiled from official program and provider references.
