Punjab Startup Interest Subsidy
Department of Industries & Commerce, Government of Punjab · Central government
Punjab covers 8% yearly interest on recognised startup bank loans for 5 years, up to INR 5 lakh annually.
Open, rolling. Applications are accepted continuously — there is no deadline.
Key facts
- Subsidy amount
- Up to ₹5,00,000
- Instrument
- Subsidy
- Deadline
- Rolling
- Disbursement
- Reimbursed after spend
About this scheme
Under clause 12.7.2 B(1) of the Industrial and Business Development Policy 2022 of Punjab, a startup that qualifies and has taken a loan from a scheduled bank or financial institution is entitled to an interest subsidy of 8% per annum on the interest rate it pays.
The subsidy is provided for a period of five years, subject to a ceiling of INR 5 lakh per annum.
The policy makes clear that a startup availing this subsidy is barred from claiming the separate MSME interest subsidy. Only one of the two can be claimed.
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
- Punjab
- Startup must qualify as eligible under the Industrial and Business Development Policy 2022 of Punjab - Loan must be availed from a scheduled bank or financial institution - Applicant must not simultaneously claim the separate MSME interest subsidy
How to apply
1. Enrol as a startup with Startup Punjab or the relevant nodal agency. 2. File the application under the Industrial and Business Development Policy 2022 through the Invest Punjab Business First portal. 3. Provide the sanction letter together with the bank's interest certificate covering the claim period.
Frequently asked questions
How much interest is covered?
The scheme covers 8% per annum of the interest paid, capped at INR 5 lakh per annum.
For how long?
Five years.
Can I also claim the MSME interest subsidy?
No. The clause specifies that an MSME will not receive a separate interest subsidy.
Which lenders qualify?
Scheduled banks and financial institutions are the entities that can participate.
Sectors
- Punjab
- Startup
- Interest Subsidy
- Term Loan
- Industrial Policy 2022
Details last verified on 18 September 2026. Source: the issuer's published information.