How to Apply for UP MSME Capital Interest Subsidy — ₹25L Loan Interest Support for Micro Units

There is no contest or pitch round here. The Capital Interest Subsidy is a claim-based incentive, so the route is administrative:

• Take a business loan from a recognised financial institution and run the unit as a new Micro Enterprise in Uttar Pradesh, staying compliant with the MSME Promotion Policy 2022.
• Pay the full interest due for the year on the eligible loan.
• File the subsidy claim with the relevant department of the Uttar Pradesh government, in practice the state MSME department.
• Attach the supporting record — the loan agreement, proof of the interest paid, the MSME registration certificate, and documents that establish the unit's newly set up status.
• The department verifies eligibility, and on approval the subsidy is disbursed annually.