Gujarat Textile Policy Interest Subsidy — 5–7% on Term Loans — Frequently Asked Questions

It reimburses a portion of the interest you pay on your term loan. The rate ranges from 5% to 7% of the term loan depending on the Taluka category and the activity, and it is available for 5 to 8 years. There is also an annual ceiling of 2% to 3% of your eligible Fixed Capital Investment (eFCI). For example, units in Category 1 Talukas and the PM MITRA Park doing Activity 1 get 7% for 8 years, capped at 3% of eFCI per year.

There is no fixed closing date — the scheme runs on a rolling basis while the policy remains in force, which is from 1 October 2024 to 29 September 2029. The deadline that matters is individual: your registration application must be filed within one year of the loan disbursement date, the start of commercial production, or the policy's operative date, whichever comes last, and the eligibility certificate application is due within one year of the Date of Commercial Production.

Industrial units in Gujarat's textile sector that hold a sanctioned term loan for Gross Fixed Capital Investment. The loan must have been disbursed on or after 1 January 2024 if the unit was under implementation as on 1 October 2024. The unit also needs to repay its instalments and interest regularly, and must itself bear at least 2% of the interest on the term loan.

The policy extends to garments, apparel and made-ups, technical textiles including composite units, weaving, knitting, dyeing and processing, texturising, twisting, embroidery, and MMF spinning.

DPIIT recognition is not among the conditions listed for this subsidy — what the policy focuses on is your sanctioned term loan and your unit's classification. MSME status does matter for one practical reason: it decides which office processes your eligibility certificate. MSME units with GFCI up to ₹10 crore apply to the General Manager at the District Industries Centre, MSME units between ₹10 crore and ₹50 crore apply to the MSME Commissioner, and non-MSME units go to the Industries Commissioner.

No. This is a subsidy paid as reimbursement of interest on your term loan, not an equity investment, so no shares or ownership stake change hands in return for the support.

For the registration stage, expect to provide your business registration papers, loan sanction letters, the project report and financial details so the authorities can scrutinise and verify them. For the eligibility certificate stage after commercial production begins, the file typically includes proof of commercial production, records of loan repayments, and evidence that you comply with the policy's guidelines.

It depends on your unit type and the size of your Gross Fixed Capital Investment. MSME units with GFCI up to ₹10 crore file with the General Manager, District Industries Centre; MSME units with GFCI above ₹10 crore and up to ₹50 crore file with the MSME Commissioner; and units that are not MSME file with the Industries Commissioner. The registration application, which comes first, goes to the Industries Commissioner.

Both the registration application and the eligibility certificate application go through scrutiny and document verification by the relevant authority. The assessment checks that the unit meets every stated condition — the loan conditions, the operational status, and consistency with the policy's objectives — before any certificate is issued.

Regular repayment of instalments and interest is one of the eligibility conditions, so a unit that falls behind on its loan servicing does not meet the criteria the authorities verify when processing the claim.

Gujarat Textile Policy Interest Subsidy — 5–7% on Term Loans is offered by Industries and Mines Department, Government of Gujarat, a government body. It is provided as non-dilutive funding.

Apply directly through the official application link on this page. Review the eligibility criteria and prepare your startup documents before you begin.