UP MSME Capital Interest Subsidy
By Government of Uttar Pradesh
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Quick Answer
Provides up to 50% interest subsidy (60% for SC/ST/women entrepreneurs) on loans for new Micro Enterprises in Uttar Pradesh, capped at ₹25 lakh over 5 years.
- Funding amount
- Up to ₹25L
- Funding type
- Subsidy
- Provider
- Government of Uttar Pradesh
- Application deadline
- Rolling
- Location
- Uttar Pradesh
- Registrations needed
- Udyam registration
About this subsidy
New Micro Enterprises in Uttar Pradesh can claim a 50% subsidy on the interest payable on their business loans, capped at ₹25 lakh per unit over 5 years. Scheduled Caste, Scheduled Tribe and women entrepreneurs get an additional 10%, so 60% in total.
The subsidy is paid annually, after the unit has paid the full interest. It is part of the Uttar Pradesh Micro, Small and Medium Enterprises (MSME) Promotion Policy 2022.
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 Government of Uttar Pradesh supports startups and businesses through a set of state policies, each run by a different department. This page covers the startup policy, which gives grants, reimbursements and free incubation to early startups, and the MSME, IT, food processing,…
Learn moreBenefits & Funding
- Amount
- Up to ₹25L
What You Get
New Micro Enterprises in Uttar Pradesh can claim a significant 50 percent interest subsidy on the interest payable on their business loans. This benefit is capped at a maximum of ₹25 lakh per unit over a period of 5 years. For eligible Scheduled Caste, Scheduled Tribe, and women entrepreneurs, an additional 10 percent subsidy is provided, increasing their total interest subsidy to 60 percent of the annual interest payment. The subsidy is provided on an annual basis and is disbursed after the full payment of interest by the unit, effectively reducing the overall cost of capital and improving cash flow for young businesses.
- Disbursement
- Reimbursement
- Duration
- 61 months
- Bootstrap friendly
- Yes
Timelines & Process
Applications
Rolling basis
Application Process
- 1
Secure Loan
Applicant secures a business loan from a financial institution.
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 Capital Interest Subsidy scheme?
The Capital Interest Subsidy scheme is part of the Uttar Pradesh MSME Promotion Policy 2022. It offers a subsidy on the interest payable on loans taken by new Micro Enterprises in the state, designed to reduce their financial burden and promote growth.
What is the maximum subsidy amount I can receive?
The maximum subsidy is ₹25 lakh per unit over a period of 5 years. This is calculated as 50% of the interest payable, or 60% for eligible SC, ST, and women entrepreneurs.
Who is eligible for this interest subsidy?
The scheme is primarily for new Micro Enterprises established in Uttar Pradesh. Additionally, Scheduled Caste, Scheduled Tribe, and women entrepreneurs receive an extra 10% subsidy, totaling 60% of their annual interest payment.
How is the subsidy disbursed?
The subsidy is given on an annual basis. Units become eligible to claim the subsidy after they have made the full payment of the annual interest on their loan.
Is there any specific industry focus for this scheme?
No, the policy document does not specify any particular industry focus. It is open to all new Micro Enterprises in the state of Uttar Pradesh that meet the general eligibility criteria.
Does my enterprise need to be registered as an MSME?
Yes, as the scheme is for 'Micro Enterprises' under the Uttar Pradesh MSME Promotion Policy, having MSME (Udyam) registration is implicitly required to classify your unit as a Micro Enterprise and avail the benefits.
Sources
Data on this page is compiled from official program and provider references.
