UP Textile & Garmenting Interest Subsidy
By Government of Uttar Pradesh
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Quick Answer
Reimbursement of 60% of annual interest paid on plant and machinery loans for textile and garmenting units in Uttar Pradesh, up to ₹1.5 crore per annum.
- Funding amount
- Up to ₹1.5Cr
- Funding type
- Subsidy
- Provider
- Government of Uttar Pradesh
- Application deadline
- Rolling
- Location
- Uttar Pradesh
About this subsidy
The Interest Subsidy on Plant and Machinery program is a pivotal incentive under the Uttar Pradesh Textile and Garmenting Policy 2022. This comprehensive scheme is designed to invigorate and modernize the textile and garment manufacturing sector throughout Uttar Pradesh by significantly alleviating the financial burden on units that undertake substantial capital investments. It specifically targets businesses seeking to purchase advanced plant and machinery, provided these investments are financed through loans from commercial banks and recognized financial institutions. By subsidizing a substantial portion of the annual interest paid on these eligible loans, the policy actively encourages technological upgradation, expansion of production capacities, and enhancement of overall competitiveness within the sector. This strategic support aims to foster robust industrial growth, create employment opportunities, and establish Uttar Pradesh as a leading hub for textile and garment manufacturing in India.
Eligibility
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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 ₹1.5Cr
What You Get
Eligible textile and garmenting units can receive a reimbursement of 60% of the annual interest paid on loans taken for plant and machinery. This subsidy is provided for a maximum period of 7 years. The annual maximum limit for this interest subsidy is ₹1.5 Crore per unit for most of Uttar Pradesh, with a specific limit of ₹75 Lakhs per unit per annum for those located in Gautam Budh Nagar district. This significant financial support helps reduce operational costs and encourages investment in advanced manufacturing infrastructure.
- Disbursement
- Reimbursement
- Duration
- 85 months
- Bootstrap friendly
- Yes
Timelines & Process
Applications
Rolling basis
Selection Process
Applications will be reviewed by the relevant state government department to verify eligibility criteria, loan details, interest payments, and compliance with the UP Textile and Garmenting Policy 2022. The process will involve validation of submitted documents and calculations of eligible subsidy amounts based on the annual interest paid. This ensures that only qualifying units receive the intended financial support.
Application Process
- 1
Submit Application
Submit the application with all required documents including loan details and proof of interest payments to the designated state authority.
You - 2
- 3
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?
Textile and garmenting units incorporated and operating within Uttar Pradesh are eligible. They must have secured loans from commercial banks or financial institutions specifically for purchasing new plant and machinery, and this machinery must meet the eligibility criteria under TUFS/ATUFS schemes.
What percentage of the annual interest is reimbursed?
60% of the actual annual interest amount they have paid on the qualifying loans for plant and machinery will be reimbursed.
Is there a maximum limit for the subsidy?
Yes, the maximum annual interest subsidy is ₹1.5 Crore per unit for textile and garmenting units located anywhere in Uttar Pradesh. For units specifically situated in the Gautam Budh Nagar district, the upper limit is ₹75 Lakhs per annum per unit.
How long can a unit avail this interest subsidy?
The interest subsidy can be claimed for a maximum duration of 7 years from the date of loan disbursement or as per the policy's specified start date for eligibility.
What kind of documentation is required for application?
Typically, applicants will need to submit loan sanction letters, disbursement proofs, statements of interest paid from their financial institutions, invoices and installation proofs for the plant and machinery, and relevant incorporation and tax registration documents for the unit. Compliance with TUFS/ATUFS eligibility for machinery is also key.
Sources
Data on this page is compiled from official program and provider references.
