Assam Working Capital Interest Subsidy
Department of Industries, Government of Assam · Central government
Assam gives 2% interest subsidy for five years on a unit's outstanding working capital loan, up to Rs 50 lakh.
Open, rolling. Applications are accepted continuously — there is no deadline.
Key facts
- Subsidy amount
- Up to ₹50,00,000
- Instrument
- Subsidy
- Deadline
- Rolling
- Disbursement
- Reimbursed after spend
About this scheme
Under Clause 14.5 of the Industrial and Investment Policy of Assam, 2019, units that meet the eligibility criteria may claim an interest subsidy of **2% on the outstanding working capital loan**, payable over **five years**.
Two ceilings apply to this benefit. The subsidy is capped at **Rs 50 lakh**, and it may not exceed 100% of the unit's investment in plant and machinery.
Only a working capital loan genuinely availed from a Bank or Financial Institution qualifies. Borrowings raised informally, or from promoters, fall outside the scheme.
Who can apply
- Eligible business forms
- Not specified
- Udyam registration
- Not specified
- MSME registration
- Not specified
- DPIIT startup recognition
- Not required
- GST registration
- Not specified
- Where the business may be based
- Assam
- Unit must be eligible under the Industrial and Investment Policy of Assam, 2019 - Applicant must hold an outstanding working capital loan from a Bank or Financial Institution - Subsidy is provided for a period of five years - Aggregate benefit is limited to Rs 50 lakh and to 100% of investment in plant and machinery
How to apply
1. Register the unit in accordance with the Industrial and Investment Policy of Assam, 2019. 2. Secure a working capital facility from a Bank or Financial Institution. 3. Procure a bank certificate stating the outstanding working capital loan and the interest charged on it. 4. Submit the interest subsidy claim to the Department of Industries & Commerce, attaching proof of investment in plant and machinery. 5. Route claims through the state single-window / EODB Assam channel.
How applications are assessed
The department follows a non-competitive route. It checks the bank's certificate covering the outstanding working capital loan, along with the unit's investment in plant and machinery. On that basis, it sanctions 2%, subject to the Rs 50 lakh ceiling.
Frequently asked questions
How much interest relief is given?
The interest subvention is 2% on the outstanding working capital loan.
For how long?
Five years.
What is the ceiling?
The maximum benefit is Rs 50 lakh, and it cannot exceed 100% of the investment made in plant and machinery.
Which loans qualify?
A working capital loan is eligible only if it is outstanding and was taken from a bank or financial institution.
Is term loan interest covered?
The clause applies to working capital loans only, and term loans are not covered by it.
Is the subsidy paid to me or my bank?
Under the policy's reimbursement process, the unit claims this incentive, which is calculated on the outstanding loan amount.
Sectors
- Manufacturing Industrial
- Assam
- Interest Subsidy
- Working Capital
- Msme
- Bank Loan
- State Policy
Details last verified on 14 September 2026. Source: the issuer's published information.