UP Startup Interest Subvention Scheme
By Government of Uttar Pradesh
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Quick Answer
Startups in Uttar Pradesh get a 4% annual interest subvention on term loans, up to ₹2 Crore over three years, under the UP Startup Policy.
- Funding amount
- Up to ₹2Cr
- Funding type
- Subsidy
- Provider
- Government of Uttar Pradesh
- Application deadline
- Rolling
- Location
- Uttar Pradesh
- Registrations needed
- DPIIT recognition
About this subsidy
Startups registered and operating in Uttar Pradesh that take term loans from scheduled banks or recognized financial institutions get a 4% per annum interest subvention under the UP Startup Policy.
The benefit is 4% of the loan amount or the actual interest paid, whichever is lower. It is capped at ₹2 Crores over 3 years and paid directly to the lender every half year. You must also follow the broader UP Startup Policy guidelines.
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 ₹2Cr
What You Get
This program offers an interest subsidy at 4% per annum subvention on term loans obtained from scheduled banks or financial institutions. The benefit is calculated as 4% of the loan amount or the actual interest paid, whichever is lower. The maximum permissible subvention is capped at ₹2 Crores over a period of 3 years. The subsidy is paid directly to the lender on a half-yearly basis, effectively reducing the interest burden on the startup and improving its working capital. This support can significantly enhance a startup's financial stability, allowing funds to be allocated towards core business operations rather than high interest payments, thereby fostering sustainable growth.
- Disbursement
- Tranched
- Duration
- 37 months
- Bootstrap friendly
- Yes
Timelines & Process
Applications
Rolling basis
Selection Process
Applications for the interest subvention are typically processed through an administrative review based on the submission of complete and accurate supporting documents. The nodal agency responsible for the UP Startup Policy will verify the startup's eligibility, the details of the term loan, and the interest payments made. This process involves cross-referencing information with scheduled banks and financial institutions to ensure compliance with the policy terms. Approvals are granted to eligible startups that successfully demonstrate adherence to all laid-out conditions.
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 UP Startup Interest Subvention Scheme?
This scheme is an incentive under the Uttar Pradesh Startup Policy designed to reduce the financial burden on startups by providing an interest subsidy on term loans obtained from scheduled banks or financial institutions. It offers a 4% annual subvention on the interest paid by eligible startups.
Who is eligible to apply for this subvention?
Startups that have secured term loans from scheduled banks or recognized financial institutions are eligible. They must also be registered and operating within Uttar Pradesh and adhere to the general guidelines of the UP Startup Policy, which typically includes DPIIT recognition.
What is the maximum financial benefit a startup can receive?
An eligible startup can receive an interest subvention up to a maximum of ₹2 Crores over a period of three years. The subsidy amount is 4% per annum on the term loan, or the actual interest paid, whichever is lower.
How is the interest subvention disbursed?
The interest subsidy is paid directly to the lending bank or financial institution on a half-yearly basis. This mechanism ensures that the benefit directly reduces the startup's interest liability without requiring direct cash handling by the startup for the subsidy portion.
Is DPIIT recognition required for this scheme?
While not explicitly stated in the verbatim text for this specific incentive, being part of the broader 'UP Startup Policy' strongly implies that startups must hold DPIIT (Department for Promotion of Industry and Internal Trade) recognition to qualify for benefits under the policy.
What kind of loans are covered under this scheme?
The scheme specifically covers 'Term Loans' obtained from scheduled banks or recognized financial institutions. These are typically medium to long-term loans used for capital expenditure, expansion, or other significant business investments, rather than short-term working capital needs.
Sources
Data on this page is compiled from official program and provider references.
