Scheme for assistance for Start Ups/ Innovation: Interest Subsidy
Industries and Mines Department, Government of Gujarat · Central government
Gujarat's Scheme for Assistance for Start Ups/Innovation funds eligible innovative startups with an extra 1% interest subsidy on MSME term loans, up to 9% total.
Open, rolling. Applications are accepted continuously — there is no deadline.
Key facts
- Subsidy amount
- Not specified
- Instrument
- Subsidy
- Deadline
- Rolling
- Disbursement
- Reimbursed after spend
About this scheme
The Industries and Mines Department, Gujarat, introduced the Scheme for Assistance for Start Ups/ Innovation under the Gujarat Industrial Policy. This component extends financial support to startups through an interest subsidy on term loans. Its stated objectives include supporting economic growth, generating employment, improving market competitiveness, and promoting advanced solutions across sectors. The scheme is directed at innovative startups requiring term loans for operations.
Through this interest subvention, the state government aims to lower the cost of capital for new enterprises, enabling greater investment in innovation and business expansion. The initiative is intended to create a more accessible financing environment for entrepreneurs and to strengthen Gujarat's position in industrial and technological development.
Who can apply
- Eligible business forms
- Private limited company, Limited liability partnership, One person company, Partnership firm, Sole proprietorship
- Udyam registration
- Not specified
- MSME registration
- Required
- DPIIT startup recognition
- Not specified
- GST registration
- Not specified
- Where the business may be based
- Gujarat
- Any individual or group of individuals possessing an innovative idea or concept, and recommended by an approved Nodal Institution, qualifies. - The scheme is sector-agnostic, open to startups across all fields, including science, technology, engineering, agriculture, healthcare, and others. - Startups receiving benefits under the Student Startup and Innovation Policy (SSIP) are also eligible.
How to apply
**Step 1: Registration** - Go to the online portal (https://startup.gujarat.gov.in/home) and select the 'Register' option located at the top right. - Provide your Email ID and press 'Next'. Confirm the information and press 'Submit' to complete registration. - After logging in, complete the Common Application Form with the required details and press 'Sign Up'.
**Step 2: Application Submission** - Access the portal again and choose 'Login'. Enter your registered Email ID and Password, then press 'Sign In'. - Under the 'Dashboard' section, provide all mandatory information. - Press the 'Apply Now' icon visible on the User Dashboard. - Choose the 'Interest Subsidy' scheme from the available options and complete the application. Make sure all documents and details relating to your innovative idea and the term loan are submitted correctly.
**Contact Us:** For assistance, contact the Startup Gujarat Cell at the Office of Industries Commissionerate, Block No: 1, 3rd Floor, Udhyog Bhavan, Sector: 11, Gandhinagar - 382010 Gujarat, INDIA. Phone: 079-23252588 / 1800-233-0616. Email: icstup@gujarat.gov.in
Frequently asked questions
What is the primary benefit of the Interest Subsidy scheme?
Eligible startups receive an additional 1% interest subsidy on term loans, capping their effective interest rate at 9% under MSME assistance schemes, which reduces borrowing costs for innovative businesses.
Who is eligible to apply for this scheme?
Any individual or group with an innovative idea, recommended by an approved Nodal Institution, is eligible, as are startups already receiving support under the Student Startup and Innovation Policy (SSIP). The scheme is sector-agnostic and open to all fields, including science, technology, engineering, agriculture, and healthcare.
Are there any sector-specific restrictions for this scheme?
No, the scheme is sector-agnostic and accepts startups from any field, including science, technology, engineering, agriculture, and healthcare. Innovation is the sole qualifying factor, irrespective of the industry.
How do I apply for the Interest Subsidy?
Register an account on the Startup Gujarat portal, log in, and complete the common application form. Then, from your dashboard, go to the 'Apply Now' section, select the Interest Subsidy scheme, and submit the required details; the Startup Gujarat Cell is available for assistance.
What is the duration of the scheme?
The umbrella 'Scheme for Assistance for Start Ups/ Innovation' is valid from August 7th, 2020, to August 6th, 2025. This component functions within that overall period.
Is MSME registration required for this scheme?
Yes, the applicant must hold MSME registration, as the interest subsidy applies only to term loans sanctioned under schemes for assistance to MSMEs.
Sectors
- Interest Subsidy
- Msme
- Gujarat Startups
- Innovation
- Financial Assistance
Details last verified on 7 September 2026. Source: the issuer's published information.