Personal Interest Subsidy Scheme

Personal Interest Subsidy Scheme is a Government of Uttarakhand initiative implemented through the Department of Industries under its MSME promotion framework. The scheme is designed to provide interest subsidy on term loans availed by MSMEs, thereby reducing the overall cost of borrowing.

The primary objective is to support new and existing MSMEs by easing their financial burden during the initial years of operation. For you as an MSME or startup, this scheme helps improve cash flow, reduce loan repayment pressure, and enhance business sustainability, especially during the early growth phase.

Key Features
Financial Assistance
Eligibility Criteria
Documents Required
Application Process

Key Features

Reduction in borrowing cost: The scheme directly lowers the effective interest rate on loans, making finance more affordable.
Support for new units: New MSMEs benefit during initial years when repayment pressure is highest.
Encouragement for expansion: Existing MSMEs can avail subsidy for expansion and modernization projects.
Bank-linked assistance: Subsidy is provided on loans sanctioned by banks or financial institutions.
Improved cash flow: Lower interest payments help maintain better working capital and liquidity.

Financial Assistance

Component	Assistance Provided	Detailed Explanation
Interest Subsidy	5%–9% on term loan	Subsidy on interest payable to bank. Example: ₹10 lakh loan → interest reduced annually through reimbursement.
Duration	Up to 5 years (indicative)	Subsidy is provided for a fixed period from date of commercial production.
Loan Coverage	Term loans only	Applicable on loans taken for plant, machinery, or expansion.
Mode of Disbursement	Reimbursement basis	Subsidy is reimbursed to the MSME after interest payment.

Eligibility Criteria

Applicant must be an MSME registered in Uttarakhand (Udyam)
Must be engaged in manufacturing or eligible service sector
Must have availed term loan from bank/financial institution
Unit must be operational and compliant
Must apply within prescribed time period
Must comply with MSME Policy 2023 guidelines

Non-eligibility conditions:

Units without bank loan
Non-MSME enterprises
Non-compliant or defaulting units

Documents Required

Aadhaar/PAN of promoter
Udyam Registration Certificate
Loan Sanction Letter
Bank statements
Interest payment proof
Project Report
GST Registration
Land/lease documents

Application Process

Option 1: Apply with Bullit, Recommended

Start instantly with our guided application support, where our team verifies eligibility, prepares documentation, and coordinates with the Industries Department on your behalf. Using our business loans and compliance calendar, you can track progress while focusing on project execution, we manage the application end-to-end.

Option 2: Apply Online / Offline (Government Process)

Register on Uttarakhand Single Window Portal
Apply for MSME Policy benefits
Submit loan sanction and project details
Upload interest payment documents
Apply for subsidy reimbursement
Verification by DIC/authority
Approval and disbursement
Track status online