Punjab Startup Policy: Interest Subsidy Scheme — Frequently Asked Questions
Answers to the questions founders most often ask about Punjab Startup Policy: Interest Subsidy Scheme — who qualifies, the funding amount, required documents and how the application works.
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.
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