UP IT/ITeS Interest Subsidy Scheme — 7% Relief, Up to ₹5Cr

The UP IT/ITeS Interest Subsidy Scheme is an incentive offered by the Government of Uttar Pradesh under the state's IT and ITeS Policy of 2022. It is aimed at new IT and IT-enabled Services units setting up in Uttar Pradesh, and it targets one of the heaviest early costs a technology business carries: the interest payable on borrowed capital.

A qualifying unit receives a 7% per annum subsidy on the interest it pays on a term loan raised from a Scheduled Bank or a recognised Financial Institution. The support runs for five years from the date commercial operations begin, is limited to ₹1 crore per unit in any single year, and can therefore add up to as much as ₹5 crore across the full term.

The wider policy goal is to establish Uttar Pradesh as a leading destination for IT/ITeS investment, attract both domestic and international companies, and generate employment across the state. Because IT/ITeS infrastructure demands substantial upfront capital, the state uses interest support to bring down the effective cost of borrowing and make a Uttar Pradesh location more attractive for new ventures.

Applications are accepted on a rolling basis — there is no closing date — and are filed through the state's Nivesh Mitra portal or with the Department of IT & Electronics, Government of Uttar Pradesh.

• 7% per annum interest subsidy on term loans from Scheduled Banks or recognised Financial Institutions
• Capped at ₹1 crore per unit every year
• Payable for 5 years from the start of commercial operations — up to ₹5 crore in total
• For new IT/ITeS units in Uttar Pradesh with a minimum Fixed Capital Investment of ₹2 crore
• Rolling applications — no closing date — filed through the state's Nivesh Mitra portal

The scheme is open to new IT/ITeS units that are establishing operations in Uttar Pradesh. If your unit is a fresh setup in the state and belongs to the IT or IT-enabled Services sector, you fall within the intended beneficiary group.

Beyond the sector and stage, three conditions decide eligibility:

• You must have raised a term loan from a Scheduled Bank or a recognised Financial Institution. The subsidy is tied to that loan, so a unit financed entirely from internal accruals or equity does not have an interest cost to subsidise.
• Your unit must show a minimum Fixed Capital Investment of ₹2 crore.
• The subsidy starts only from the commencement of commercial operations, so the unit needs to be operational, not merely incorporated.

You should also be in a position to produce supporting paperwork — proof of incorporation, evidence of the Fixed Capital Investment, the loan sanction letter, and documentation showing that commercial operations have begun.

UP IT/ITeS Interest Subsidy Scheme — 7% Relief, Up to ₹5Cr is open to startups at any stage. It is open to startups registered anywhere in India.

UP IT/ITeS Interest Subsidy Scheme — 7% Relief, Up to ₹5Cr 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.

The benefit is a 7% per annum interest subsidy on the term loan a new IT/ITeS unit has taken from a Scheduled Bank or a recognised Financial Institution. It is a cash incentive that reduces your debt servicing cost rather than a grant paid upfront.

How the amount is worked out:

• The subsidy is calculated on the term loan amount or the interest actually paid, whichever figure is lower, so the support is calibrated to the real cost you bear.
• It is capped at a maximum of ₹1 crore per annum per unit.
• The annual benefit continues for 5 years, counted from the date your commercial operations begin.
• Over the full five years, the total relief available to a unit can reach ₹5 crore.

Because disbursement is annual and based on the interest actually paid, the subsidy keeps working through the early, cash-hungry years of the unit and frees up money for growth, innovation and hiring within Uttar Pradesh.

UP IT/ITeS Interest Subsidy Scheme — 7% Relief, Up to ₹5Cr is offered by Government of Uttar Pradesh, 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.

Applications go through a multi-stage evaluation before any subsidy is approved.

• Application submission. The unit files its application along with the supporting documents.
• Document screening. The Department of IT & Electronics, Government of Uttar Pradesh, or its nodal agency scrutinises every submission to confirm that eligibility conditions are met — the unit's registration, its Fixed Capital Investment, and the details of the loan sanction.
• Detailed assessment. The project's viability and its compliance with the IT and ITeS Policy of Uttar Pradesh 2022 are examined in depth.
• Committee review. A dedicated committee or panel of experts reviews the applications and may ask for additional information.
• Verification. Site visits may be conducted to confirm that the stated conditions are actually in place.
• Approval and disbursal. Once verification is complete and the designated committee approves, the interest subsidy is released annually, based on the interest actually paid, within the maximum limits set by the policy.

Submitting complete and accurate documents at the outset is the simplest way to avoid delays in processing.

Before you apply to UP IT/ITeS Interest Subsidy Scheme — 7% Relief, Up to ₹5Cr, keep the following documents ready:

• 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.

UP IT/ITeS Interest Subsidy Scheme — 7% Relief, Up to ₹5Cr is best suited for startups in India seeking non-dilutive funding of ₹5Cr. If that describes your startup, review the eligibility criteria above before applying.