UP Working Capital Interest Subsidy
By Government of Uttar Pradesh
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Quick Answer
Provides an interest subsidy of 5% on working capital loans, capped at ₹50,000 per annum for 5 years, to eligible silk reeling units in Uttar Pradesh.
- Funding amount
- Up to ₹2.5L
- Funding type
- Subsidy
- Provider
- Government of Uttar Pradesh
- Application deadline
- Rolling
- Location
- Uttar Pradesh
About this subsidy
The Working Capital Interest Subsidy is a key incentive under the Uttar Pradesh Textile and Garmenting Policy 2022, designed to bolster the state's vital textile sector. This program aims to alleviate the financial burden on silk reeling units by subsidizing the interest paid on their working capital loans. By reducing operational costs, the Government of Uttar Pradesh seeks to encourage the growth and sustainability of local silk production, particularly those units that prioritize using koya (silk cocoons) produced within Uttar Pradesh. This initiative supports the broader policy goal of fostering a robust and self-reliant textile and garmenting ecosystem in the state, promoting employment and economic development in rural and semi-urban areas.
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 ₹2.5L
What You Get
The program offers a crucial 5% interest subsidy on working capital loans, significantly reducing the financial overhead for eligible silk reeling units. This subsidy is capped at ₹50,000 per annum and is available for a duration of five years, providing sustained financial relief. This support helps units manage their day-to-day operational expenses more effectively, improve cash flow, and invest in necessary raw materials and labor. By mitigating interest costs, the scheme enhances the competitiveness and operational viability of local silk reeling units, contributing to their long-term growth and stability within the Uttar Pradesh textile industry.
- Disbursement
- Reimbursement
- Duration
- 61 months
- Bootstrap friendly
- Yes
Timelines & Process
Applications
Rolling basis
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 primary benefit of the Working Capital Interest Subsidy?
The program provides an interest subsidy at the rate of 5% on working capital loans, helping to reduce the financial burden on eligible silk reeling units in Uttar Pradesh.
What is the maximum amount of subsidy an eligible unit can receive?
The maximum limit for this interest subsidy is ₹50,000 per annum. This benefit is extended for a period of 5 years, totaling up to ₹2,50,000 over the policy tenure.
Who is eligible to claim this interest subsidy?
Silk reeling units that are located in Uttar Pradesh and produce a minimum of 75% thread from koya (silk cocoons) originating from Uttar Pradesh are eligible.
What is the duration for which this subsidy is provided?
The interest subsidy is provided for a continuous period of 5 years from the date of sanction, provided the unit continues to meet the eligibility criteria.
Does this program require an equity stake from my company?
No, this is an interest subsidy program and is completely equity-free. The benefit is purely financial support to reduce the cost of your working capital loan.
Is there a specific deadline to apply for this subsidy?
The program operates on a rolling basis under the UP Textile and Garmenting Policy 2022. There is no specific application deadline mentioned, allowing units to apply throughout the policy's active period.
Sources
Data on this page is compiled from official program and provider references.
