Punjab Startup Policy: Interest Subsidy Scheme
Under Punjab Startup Policy by Department of Industries & Commerce, Government of Punjab
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Quick Answer
DPIIT-recognized Punjab startups get an annual interest subsidy on scheduled bank loans, up to ₹5 Lakh/year.
- Funding amount
- Up to ₹5L
- Funding type
- Subsidy
- Application deadline
- Rolling
- Location
- Punjab
- Registrations needed
- DPIIT recognition
About this subsidy
DPIIT-recognized startups registered in Punjab can get an annual interest subsidy of 8% on term loans or working capital loans from scheduled banks or other registered financial institutions. The subsidy is capped at ₹5,00,000 per year, for five years from the date of policy implementation or the date of loan disbursement, whichever is later. That adds up to as much as ₹25 Lakh over the policy period. It is paid every year against the interest you actually paid that year.
The loan must be in the startup's name and its EMIs must be current. The loan must be used only for business operations, setup or scaling.
The scheme is part of the Punjab Startup Policy, run by the Department of Industries & Commerce, Government of Punjab (Startup Punjab), under the Invest Punjab framework.
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
The Department of Industries & Commerce is the Government of Punjab's department that runs the Punjab Start-up Cell. The Cell is headed by the Director of Industries and Commerce and acts as a single point of contact for the state's startup policy. The department is based at…
Learn moreBenefits & Funding
- Amount
- Up to ₹5L
What You Get
Annual interest subsidy of 8% on term or working capital loans, capped at ₹5 Lakh per year for five years (total ₹25 Lakh). This reduces the financial burden by making borrowing more affordable, improving cash flow and stability, and encouraging investment in growth.
- Disbursement
- Tranched
Timelines & Process
Applications
Rolling basis
Selection Process
Applications are submitted via the Invest Punjab portal with required documentation. Eligibility is verified based on submitted documents, followed by approval for annual subsidy disbursements.
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.
Frequently Asked Questions
What is the Punjab Startup Policy Interest Subsidy Scheme?
The scheme offers an annual interest subsidy of 8% on loans availed by DPIIT-recognized startups from scheduled banks or financial institutions.
What is the maximum subsidy amount available?
The subsidy is capped at ₹5,00,000 per year for a period of 5 years, providing a total potential support of up to ₹25 Lakh.
What are the primary eligibility criteria for this scheme?
Eligible startups must be DPIIT-recognized, registered in Punjab, and have an active term or working capital loan from a scheduled bank or registered financial institution, used for business operations, setup, or scaling.
How often is the subsidy disbursed?
The subsidy is disbursed annually based on the actual interest paid by the startup.
What documents are required for the application?
Applicants need to provide their DPIIT certificate, loan sanction letter, repayment schedule, and bank statements showing interest paid.
Sources
Data on this page is compiled from official program and provider references.
