Odisha MSME Interest Subsidy Scheme
By MSME Department, Government of Odisha
Check your eligibility
Sign up and we'll tell you whether your startup qualifies for this grant.
Quick Answer
New enterprises in Odisha get 50% of the interest on term loans reimbursed for 5 years, up to a maximum of ₹1 crore, under the Odisha MSME Development Policy 2022.
- Funding amount
- Up to ₹1Cr
- Funding type
- Subsidy
- Application deadline
- Rolling
- Location
- Odisha
- Registrations needed
- Udyam registration
About this subsidy
New enterprises incorporated in Odisha get 50% of the interest they pay on term loans reimbursed. This is the scheme in Section 7.4 of the Odisha MSME Development Policy 2022.
The subsidy runs for 5 years from the date production starts. The total benefit is capped at ₹1 crore. The term loan must come from a public financial institution or bank, and your investment in Plant & Machinery must be up to ₹50 crore.
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 Micro, Small and Medium Enterprises Department, Government of Odisha, is the state department created to facilitate, promote and improve the competitiveness of micro, small and medium enterprises in Odisha. It sits in Kharavel Bhawan, Bhubaneswar, and administers the state's…
Learn moreBenefits & Funding
- Amount
- Up to ₹1Cr
What You Get
The scheme offers a significant financial incentive by reimbursing 50% of the interest paid on term loans availed from public financial institutions or banks. This subsidy is applicable for a period of 5 years from the date of commencement of production, providing long-term support to new businesses. The total benefit under this scheme is capped at a maximum of ₹1 crore. This direct interest subsidy helps reduce operational costs, making it easier for new enterprises to manage debt and invest further in growth. It serves as a crucial capital incentive, enabling businesses to achieve profitability faster and sustain their operations, thereby strengthening the industrial base of Odisha.
- Disbursement
- Reimbursement
- Duration
- 61 months
- Bootstrap friendly
- Yes
Timelines & Process
Applications
Rolling basis
Selection Process
Applications for the Interest Subsidy Scheme are meticulously reviewed by a committee appointed by the Department of MSME, Government of Odisha. The evaluation process involves verifying the eligibility criteria, including the enterprise's new status, investment in plant and machinery, and the authenticity of the term loan and interest payments. Authorities will scrutinize submitted documents and may conduct site visits or request additional clarifications to ensure compliance with the policy guidelines. Approval is granted based on adherence to all stipulated conditions and availability of funds under the scheme, ensuring transparency and fairness in disbursement.
Application Process
- 1
Apply Online/Offline
Submit the application form and required documents to the designated MSME department.
You - 2
- 3
- 4
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
Who is eligible for this interest subsidy?
New enterprises in Odisha that have invested up to ₹50 crore in plant and machinery and have availed term loans from public financial institutions/banks are eligible.
What is the maximum subsidy amount I can receive?
The total maximum limit for the interest reimbursement under this scheme is ₹1 crore.
For how long can I claim this subsidy?
The subsidy is provided for a period of 5 years from the date of commencement of production.
What type of loan is covered under this scheme?
Term loans availed from public financial institutions and banks are eligible for the interest subsidy.
Is MSME registration mandatory for this scheme?
Yes, as this is part of the Odisha MSME Development Policy, MSME Udyam registration is required for eligibility.
Where can I find the official policy document?
The official policy document, "Odisha MSME Development Policy 2022", is available on the Odisha MSME department's website.
Sources
Data on this page is compiled from official program and provider references.
