Gujarat Startup Interest Subsidy Scheme — 1% Extra Off Term Loans — Frequently Asked Questions

It does not hand over a fixed lump sum. The scheme adds an extra 1% interest subsidy to a term loan that the startup has taken under MSME assistance provisions, and the combined effect keeps the effective interest rate on that loan at a maximum of 9%. The rupee value of the relief therefore depends on how large the term loan is and the rate at which it was sanctioned, which is why the amount is shown as varying.

Any individual or group of individuals with an innovative idea or concept can apply, provided the idea has been recommended by an approved Nodal Institution. The scheme is sector-agnostic, so applicants from science, technology, engineering, agriculture, healthcare and other fields are all considered. Startups already receiving support under the Student Startup and Innovation Policy (SSIP) are eligible too.

No. The scheme is deliberately sector-agnostic and covers startups across all branches of science, technology, engineering, agriculture, healthcare and similar domains. Innovation is the criterion that matters, not the industry the startup operates in.

Yes, in effect. The interest subsidy is granted on a term loan sanctioned under MSME assistance provisions, so the applicant startup needs MSME registration to hold that underlying loan — and the subsidy follows from the loan.

No. This is a subsidy, not an equity investment. The amount is a non-repayable benefit that reduces your interest burden; only the term loan itself has to be repaid to the lender. The government does not take a stake in the business in return.

Applications are accepted on a rolling basis, so there is no fixed closing date to chase. The umbrella Scheme for Assistance for Start Ups/ Innovation is notified as valid from 7 August 2020 to 6 August 2025, and this Interest Subsidy component operates within that validity period.

Registration and submission both happen online. Register on the Startup Gujarat portal (https://startup.gujarat.gov.in/home) using your email ID, verify and submit the details, then complete the Common Application Form after logging in. Once you are inside your dashboard, use the 'Apply Now' icon, select the Interest Subsidy scheme from the list and fill in the application, making sure the information about your innovative idea and your term loan is accurate.

The scheme does not publish a separate document checklist. The portal application requires accurate details and supporting information relating to your innovative idea and to the term loan, along with the recommendation from your approved Nodal Institution, so keep those papers ready before you begin.

Yes. Startups that are already availing benefits under the Student Startup and Innovation Policy (SSIP) are explicitly eligible for this interest subsidy as well. The two do not exclude each other.

The Startup Gujarat Cell handles queries. You can reach it at the Office of Industries Commissionerate, Block No: 1, 3rd Floor, Udhyog Bhavan, Sector: 11, Gandhinagar - 382010, Gujarat, India. Phone: 079-23252588 or 1800-233-0616. Email: icstup@gujarat.gov.in.

No. DPIIT (Startup India) recognition is not listed as a mandatory requirement for Gujarat Startup Interest Subsidy Scheme — 1% Extra Off Term Loans, though having it can strengthen your application and unlock other benefits.

Gujarat Startup Interest Subsidy Scheme — 1% Extra Off Term Loans is offered by Industries and Mines Department, Government of Gujarat, a government body. It is provided as non-dilutive funding.