Bihar Textile Interest Subvention 2022
Department of Industries, Government of Bihar · Central government
Bihar's interest subvention reimburses textile and leather units 10% (12% for micro and small) for 5 years, capped at ₹20 crore.
Open, rolling. Applications are accepted continuously — there is no deadline.
Key facts
- Subsidy amount
- Up to ₹20,00,00,000
- Instrument
- Subsidy
- Deadline
- Rolling
- Disbursement
- Reimbursed after spend
About this scheme
Textile and leather units falling under Category A or Category B can claim a subsidy on the interest payable on term loans, as provided under incentive 6 of the Bihar Textile & Leather Policy, 2022. The state bears interest at whichever is lower — the actual rate charged, or a ceiling of 10%, raised to 12% for micro and small units. This support runs for a maximum of five years.
A unit's cumulative subvention cannot exceed either 50% of its Fixed Capital Investment (FCI) or ₹20 crore, whichever works out lower.
The Department of Industries, Government of Bihar, operates the incentive. Applications are routed through the state single window, following the procedure laid down in the policy.
Who can apply
- Eligible business forms
- Not specified
- Udyam registration
- Not specified
- MSME registration
- Not specified
- DPIIT startup recognition
- Not specified
- GST registration
- Not specified
- Where the business may be based
- Bihar
- Textile or leather units located in Bihar, falling under Category A or Category B - The unit must be repaying a term loan and paying interest on it - Micro and small units are eligible for the higher rate of 12% - The total claim cannot exceed 50% of Fixed Capital Investment
How to apply
1. Register the unit with the Department of Industries under the Bihar Textile & Leather Policy, 2022. 2. Obtain sanction and disbursement of the term loan from a recognised financial institution. 3. File the interest subvention claim on the Bihar single window portal, attaching the bank's interest certificate and the loan statement. 4. Claims are checked against Fixed Capital Investment prior to release.
Frequently asked questions
What interest rate does Bihar cover?
The interest subvention is capped at 10%, or 12% for micro and small units, and is limited to the actual rate of interest where that is lower.
For how long is the subvention paid?
Up to five years for any eligible unit.
Is there an overall cap?
Yes, but the subvention is capped at whichever is lower: 50% of the unit's Fixed Capital Investment or ₹20 crore.
Do micro and small units get better terms?
Yes, such applicants qualify for a 12% ceiling in place of the standard 10%.
Sectors
- Manufacturing Industrial
- Consumer D2c Marketplaces
- Bihar
- Textile
- Leather
- Interest Subsidy
- Term Loan
- State Policy
Details last verified on 18 September 2026. Source: the issuer's published information.