UP MSME Capital Interest Subsidy
Government of Uttar Pradesh · Central government
Uttar Pradesh offers new Micro Enterprises up to 50% interest subsidy, 60% for SC/ST/women, on loans capped at ₹25 lakh over 5 years.
Open, rolling. Applications are accepted continuously — there is no deadline.
Key facts
- Subsidy amount
- Up to ₹25,00,000
- Instrument
- Subsidy
- Deadline
- Rolling
- Disbursement
- Reimbursed after spend
- Scheme duration
- 5 years
About this scheme
The Uttar Pradesh Micro, Small and Medium Enterprises (MSME) Promotion Policy 2022 seeks to drive industrial growth and create jobs throughout the state. Within this policy, the Capital Interest Subsidy scheme lowers the financial load on new Micro Enterprises. It applies to recently set up micro-units in Uttar Pradesh and covers part of the interest due on their business loans.
For new businesses, obtaining affordable capital is frequently a major hurdle. By bringing down the actual cost of borrowing, the scheme supports entrepreneurship, encourages investment in new ventures, and helps these units reach viability sooner.
Entrepreneurs from the Scheduled Caste and Scheduled Tribe communities, as well as women entrepreneurs, receive added benefits under this scheme. This reflects the policy's aim of spreading economic growth more evenly and strengthening underrepresented groups within Uttar Pradesh's entrepreneurial landscape. The subsidy is paid out every year, giving steady backing through the early, formative years of a new micro-enterprise.
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
- Uttar Pradesh
- New Micro Enterprises in Uttar Pradesh are eligible. - The subsidy applies to interest payable on business loans. - Claims may be filed annually, once interest has been paid in full. - Entrepreneurs belonging to the Scheduled Caste or Scheduled Tribe, as well as women entrepreneurs, can access additional benefits.
How to apply
To claim the Capital Interest Subsidy available under the Uttar Pradesh MSME Promotion Policy 2022, a new Micro Enterprise has to complete the procedure set down by the state authorities. The steps generally involved are:
- Obtaining a business loan from a recognised financial institution. - Running the unit as a 'new Micro Enterprise' in Uttar Pradesh and meeting the requirements of the MSME Policy 2022. - Paying the full interest due on the eligible loan each year. - Filing a subsidy claim with the concerned department of the Uttar Pradesh State Government, in all likelihood the MSME department. - Furnishing the complete set of documents required, which may cover loan agreements, proof of interest paid, MSME registration certificates, and records establishing the enterprise's 'new' status. - The claim is then examined for eligibility, and once approved, the subsidy is released on an annual basis.
Frequently asked questions
What is the Capital Interest Subsidy scheme?
Under the Uttar Pradesh MSME Promotion Policy 2022, the Capital Interest Subsidy scheme provides a subsidy on interest payable on loans taken by new Micro Enterprises in the state, easing their financial burden and supporting growth.
What is the maximum subsidy amount I can receive?
The subsidy is capped at ₹25 lakh per unit across 5 years, covering 50% of the interest payable, or 60% for entrepreneurs belonging to SC, ST, and women categories.
Who is eligible for this interest subsidy?
This scheme mainly targets new Micro Enterprises set up in Uttar Pradesh. Entrepreneurs from Scheduled Caste, Scheduled Tribe, and women categories additionally qualify for a 10% higher subsidy, bringing their total to 60% of the annual interest paid.
How is the subsidy disbursed?
The subsidy is disbursed annually, and a unit can claim it only once it has paid the full year's interest on its loan.
Is there any specific industry focus for this scheme?
The policy document does not name any industry focus; any new Micro Enterprise in Uttar Pradesh that satisfies the general eligibility criteria may apply.
Does my enterprise need to be registered as an MSME?
Yes. Because the Uttar Pradesh MSME Promotion Policy extends its benefits only to units classified as Micro Enterprises, MSME (Udyam) registration is required to establish that classification.
Sectors
- Micro Enterprise
- Interest Subsidy
- Uttar Pradesh
- Msme
Details last verified on 18 September 2026. Source: the issuer's published information.