UP Working Capital Interest Subsidy
Government of Uttar Pradesh · Central government
Uttar Pradesh silk reeling units can get a 5% interest subsidy on working capital loans, up to ₹50,000 a year for 5 years.
Open, rolling. Applications are accepted continuously — there is no deadline.
Key facts
- Subsidy amount
- Up to ₹2,50,000
- Instrument
- Subsidy
- Deadline
- Rolling
- Disbursement
- Reimbursed after spend
- Scheme duration
- 5 years
About this scheme
The Working Capital Interest Subsidy is one of the incentives offered under the Uttar Pradesh Textile and Garmenting Policy 2022. It applies to silk reeling units and works by subsidising the interest these units pay on their working capital loans.
The purpose of the subsidy is to lower the cost of operations for silk reeling units. The Government of Uttar Pradesh intends this to support the growth and continued viability of local silk production, with a particular focus on units that give preference to koya (silk cocoons) produced within Uttar Pradesh.
The scheme sits within the wider objectives of the policy, which include building a textile and garmenting ecosystem in the state that is both robust and self-reliant, and generating employment and economic development in rural and semi-urban areas.
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
- Not specified
- DPIIT startup recognition
- Not specified
- GST registration
- Not specified
- Where the business may be based
- Uttar Pradesh
- The applicant unit must be a silk reeling unit situated in Uttar Pradesh. - At least 75% of the thread produced by the unit must be reeled from koya originating within Uttar Pradesh.
How to apply
Applications for the Working Capital Interest Subsidy are usually filed via the Government of Uttar Pradesh's official portal or the department nominated for this purpose, in line with the guidelines laid out under the UP Textile and Garmenting Policy 2022. An applicant would ordinarily have to furnish papers concerning the registration of their silk reeling unit, evidence of production from local koya, particulars of the working capital loan availed, and other financial statements. The procedure comprises filing the application, scrutiny by the concerned authorities, and release of the interest subsidy once approval is granted.
Frequently asked questions
What is the primary benefit of the Working Capital Interest Subsidy?
The programme offers a 5% interest subsidy on working capital loans, which lowers the financial burden on eligible silk reeling units in Uttar Pradesh.
What is the maximum amount of subsidy an eligible unit can receive?
The interest subsidy is capped at ₹50,000 per annum and is available for 5 years, amounting to a maximum of ₹2,50,000 across the policy tenure.
Who is eligible to claim this interest subsidy?
Units in Uttar Pradesh that reel silk are eligible provided at least 75% of the thread they produce comes from koya sourced within the state.
What is the duration for which this subsidy is provided?
Interest subsidy is available for five consecutive years starting from the sanction date, as long as the unit keeps satisfying the eligibility criteria.
Does this program require an equity stake from my company?
No — this is an interest subsidy programme, so no equity is taken in your business. The support is purely financial, aimed at lowering the cost of your working capital loan.
Is there a specific deadline to apply for this subsidy?
Under the UP Textile and Garmenting Policy 2022, applications are accepted on a rolling basis, and no fixed deadline has been notified, so units may apply at any point while the policy remains in force.
Sectors
- Manufacturing Industrial
- Uttar Pradesh
- Textile
- Garmenting
- Silk Reeling
- Working Capital
- Interest Subsidy
- Msme Support
Details last verified on 14 September 2026. Source: the issuer's published information.