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

The scheme pays 7% per annum of the interest on your term loan. The annual payout is capped at ₹1 crore per unit, and the benefit runs for five years, so the maximum a single unit can receive over the whole period is ₹5 crore.

No. This is a rolling scheme that stays open, so you can apply at any time rather than waiting for a window to open. Applications are submitted through the Nivesh Mitra portal or to the Department of IT & Electronics, Government of Uttar Pradesh.

New IT/ITeS units establishing operations in Uttar Pradesh are eligible. The unit must have taken a term loan from a Scheduled Bank or a recognised Financial Institution, must have a minimum Fixed Capital Investment of ₹2 crore, and can draw the subsidy from the point at which its commercial operations commence.

It is calculated on the term loan amount or on the interest you have actually paid — the lower of those two figures is used. That means the subsidy is tied to the real cost you are bearing on the borrowing.

It begins from the date your commercial operations commence, not from the date of incorporation or loan sanction. From that starting point, the benefit is available for a continuous period of five years.

Term loans obtained from Scheduled Banks and recognised Financial Institutions qualify. The scheme is intended to support capital expenditure by new units setting up in Uttar Pradesh, so the loan needs to be a term loan of that kind.

Neither is a stated condition of this subsidy on its own. Udyam registration may be needed where it applies to your unit, and DPIIT Startup India recognition is relevant if you are seeking other benefits that require it. The core requirements here are the term loan and the ₹2 crore Fixed Capital Investment.

No. This is a subsidy, not an equity investment — the Government of Uttar Pradesh does not take shares or a stake in your unit in return for the support. The benefit is simply a cash subsidy linked to the interest you pay on your term loan.

Typically you will need proof of company incorporation, Udyam registration if applicable, DPIIT Startup India recognition if you are seeking it for other benefits, a detailed project report, proof of Fixed Capital Investment of ₹2 crore or more, the term loan sanction letter from a Scheduled Bank or Financial Institution, and documentation showing that commercial operations have commenced.

Applications are filed through a designated online portal or with the Department of IT & Electronics, Government of Uttar Pradesh, with applicants registering on the state's investment facilitation portal — the Nivesh Mitra portal at https://niveshmitra.up.gov.in/. After submission there is an initial scrutiny, followed by a detailed appraisal that may involve site visits or verification of financial statements and project progress. Once the designated committee approves, the subsidy is disbursed annually based on the interest actually paid, subject to the policy's maximum limits.

UP IT/ITeS Interest Subsidy Scheme — 7% Relief, Up to ₹5Cr is offered by Government of Uttar Pradesh, a government body. It is provided as non-dilutive funding.