Punjab Startup Policy: Interest Subsidy Scheme — Frequently Asked Questions

This scheme offers an annual interest subsidy of 8% on term or working capital loans taken by eligible startups from scheduled banks or registered financial institutions. It aims to reduce the financial burden on new businesses in Punjab.

The scheme provides a maximum interest subsidy of ₹5,00,000 per year. This support can be availed for up to five years, potentially leading to a total cumulative benefit of ₹25 Lakh.

To be eligible, your startup must be recognized by DPIIT, registered in Punjab, and have an active term or working capital loan from a scheduled bank or registered financial institution. The loan must be in the startup's name, its EMIs must be current, and the funds must be used for business operations, setup, or scaling. The scheme is open to private limited companies, LLPs, and partnerships in the product or revenue stages.

Yes, DPIIT (Department for Promotion of Industry and Internal Trade) recognition is a crucial eligibility requirement for all applicant startups under this scheme.

No, this program provides an interest subsidy, which is a form of grant funding. It is non-dilutive, meaning the scheme does not take any equity in your startup.

The scheme covers both term loans and working capital loans that have been availed from scheduled banks or other registered financial institutions.

The interest subsidy is disbursed annually. The amount is calculated based on the actual interest paid by the startup during that year.

The application process for this scheme is rolling, meaning it is always open for eligible startups to apply at any time.

Applications are submitted online through the Invest Punjab portal. You will need to provide the required documentation for eligibility verification.

Applicants generally need to submit their DPIIT recognition certificate, the loan sanction letter, the loan repayment schedule, and bank statements showing the interest paid on the loan.

Punjab Startup Policy: Interest Subsidy Scheme provides ₹5L (up to) as grant. Always confirm the exact amount and any conditions on the official site, as figures can change between cohorts.

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.