Punjab Startup Policy: Interest Subsidy Scheme
Annual interest subsidy up to ₹5 Lakh for DPIIT-recognized Punjab startups on business loans.
- Funding amount
- ₹5L (subsidy)
- Funding type
- Subsidy
- Provider
- Department of Industries & Commerce, Government of Punjab (Government)
- Application deadline
- Rolling
- Eligible stage
- Product · Revenue
- Location
- Open to startups registered in India
- DPIIT recognition
- Required — the startup must hold DPIIT (Startup India) recognition
Overview
The Punjab Startup Policy Interest Subsidy Scheme is an initiative by the Department of Industries & Commerce, Government of Punjab, designed to reduce the cost of borrowing for eligible startups. By providing an annual interest subsidy of 8% on term loans or working capital loans obtained from scheduled banks or registered financial institutions, the scheme aims to ease financial pressure and encourage growth.
Startups registered in Punjab that are recognized by DPIIT and have availed business loans from scheduled banks can benefit from this subsidy. The annual subsidy is capped at ₹5,00,000 per year for up to five years, offering total support of up to ₹25 Lakh over the scheme period. The subsidy is calculated on the actual interest paid and disbursed annually, making it a reliable, non-dilutive source of financial relief.
This program encourages startups to access formal credit and use loan funds for core operations, setup, or scaling. By integrating with mainstream banking, it fosters a culture of financial discipline and stability among early-stage ventures.
Highlights
- Annual interest subsidy of 8% on loans — cap ₹5 Lakh/year for 5 years
- Total support up to ₹25 Lakh over the scheme period
- Open only to DPIIT-recognized startups registered in Punjab
- Subsidy calculated on actual interest paid and disbursed annually
- Supports product-stage and revenue-stage ventures with loans from scheduled banks
Who can apply
To qualify for the Interest Subsidy Scheme, the startup must:
- Be DPIIT-recognized (mandatory).
- Be registered in Punjab.
- Be at the product or revenue stage.
- Have availed a term loan or working capital loan from a scheduled bank or registered financial institution. The loan must be in the startup's name and EMIs must be up to date.
- Use the loan proceeds exclusively for business operations, setup, or scaling.
- Be a private limited company, LLP, or partnership firm.
Punjab Startup Policy: Interest Subsidy Scheme is open to startups at the product and revenue stage. The programme is targeted at startups registered in Punjab. Applicants should be registered as private limited, llp and partnership. Applicants must hold DPIIT (Startup India) recognition.
- Eligible stage
- Product · Revenue
- Location
- Open to startups registered in India
- Entity type
- Private Limited, Llp, Partnership
- DPIIT recognition
- Required — the startup must hold DPIIT (Startup India) recognition
Deadline & timing
Punjab Startup Policy: Interest Subsidy Scheme accepts applications on a rolling basis — there is no fixed cut-off date, so eligible startups can apply at any time. Because rolling programmes can pause without notice, confirm the window is still open on the official site before you start.
What the funding covers
Eligible startups receive an annual interest subsidy of 8% on the eligible loan amount, capped at ₹5,00,000 per year. The subsidy can be claimed for up to five years, providing a total potential benefit of ₹25 Lakh. The subsidy is calculated on the interest actually paid and is disbursed annually, directly reducing the cost of borrowing without any equity dilution.
About the provider
Punjab Startup Policy: Interest Subsidy Scheme is offered by Department of Industries & Commerce, Government of Punjab, a government body. As a government-backed subsidy, it is publicly funded and open to eligible startups across India. You can verify current details and timelines on the provider's official website before applying.
How to apply
Applications are submitted on the official portal. Confirm the current deadline and document checklist there before you start.
Selection process
Applications are submitted online through the Invest Punjab portal. Applicants must upload the required documents — including the DPIIT certificate, loan sanction letter, repayment schedule, and bank statements proving interest payments. The department verifies eligibility based on the submitted documentation. Once approved, the subsidy is disbursed annually in accordance with the interest paid.
Documents you’ll need
Before you apply to Punjab Startup Policy: Interest Subsidy Scheme, keep these documents ready — note the program-specific requirements at the top:
- DPIIT (Startup India) recognition certificate — mandatory for this program
- Certificate of incorporation showing your startup is registered as private limited and llp
- A pitch deck or short business plan describing the problem, product and traction
- Company registration documents and PAN
- Founder identification (PAN / Aadhaar) and brief profiles
- Recent financial statements or projections
- Product details — a demo, prototype or working link if available
Exact requirements are confirmed on the official application portal — treat this as a preparation checklist.
Who this is best for
Punjab Startup Policy: Interest Subsidy Scheme is best suited for product and revenue-stage startups in India seeking non-dilutive funding of ₹5L. Because DPIIT recognition is mandatory, it is aimed at startups already registered under Startup India. If that describes your startup, review the eligibility criteria above before applying.
Frequently asked questions
What funding does this scheme offer?
It provides an annual interest subsidy of 8% on term loans or working capital loans, capped at ₹5,00,000 per year for up to five years, totalling ₹25 Lakh.
Who can apply?
Only DPIIT-recognized startups registered in Punjab that are at the product or revenue stage. Eligible entity types include private limited companies, LLPs, and partnerships.
Is DPIIT registration mandatory?
Yes, DPIIT recognition is a mandatory eligibility requirement.
What loans are covered?
Both term loans and working capital loans from scheduled banks or registered financial institutions are eligible.
How is the subsidy calculated?
The subsidy equals 8% of the interest actually paid by the startup in a year, subject to a maximum of ₹5 Lakh per year.
How often is the subsidy disbursed?
The subsidy is disbursed annually, based on the interest paid during the preceding year.
What documents are needed?
You must provide the DPIIT certificate, loan sanction letter, loan repayment schedule, and recent bank statements showing interest payments.
How do I apply?
Submit your application online through the Invest Punjab portal at pbindustries.gov.in/startup.
Does the scheme take equity?
No, this is a subsidy and does not require any equity stake in return.
Is there an application deadline?
No, the scheme is open on a rolling basis — applications are accepted at any time.
How much funding does Punjab Startup Policy: Interest Subsidy Scheme provide?
Punjab Startup Policy: Interest Subsidy Scheme provides ₹5L (up to) as subsidy. Always confirm the exact amount and any conditions on the official site, as figures can change between cohorts.
Who offers Punjab Startup Policy: Interest Subsidy Scheme?
Punjab Startup Policy: Interest Subsidy Scheme is offered by Department of Industries & Commerce, Government of Punjab, a government body. It is provided as non-dilutive funding.
More funding from Department of Industries & Commerce, Government of Punjab
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Alternatives to Punjab Startup Policy: Interest Subsidy Scheme
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