UP IT/ITeS Interest Subsidy Scheme
By Government of Uttar Pradesh
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Quick Answer
An interest subsidy of 7% per annum on term loans, up to ₹1 crore annually for 5 years, designed for new IT/ITeS units in Uttar Pradesh with a minimum Fixed Capital Investment of ₹2 crore.
- Funding amount
- Up to ₹5 Cr
- Funding type
- Subsidy
- Provider
- Government of Uttar Pradesh
- Application deadline
- Rolling
- Eligible stage
- Revenue
- Location
- Uttar Pradesh
About this subsidy
The IT and ITeS Policy of Uttar Pradesh 2022 aims to establish Uttar Pradesh as a leading destination for IT and IT-enabled Services investments. This policy seeks to foster a robust ecosystem for technology companies, attract domestic and international players, and generate significant employment opportunities across the state. The Interest Subsidy for New IT/ITeS Units is a pivotal component of this broader strategic framework, specifically designed to alleviate the initial financial burden on nascent technology enterprises. By offering a substantial subsidy on term loan interest, the government incentivizes new units to establish and expand their operations within Uttar Pradesh, thereby boosting economic growth and technological innovation. This measure is crucial for encouraging capital investment in a sector that is vital for modern economic development, making it more attractive for companies to choose Uttar Pradesh for their new ventures. It addresses a key challenge faced by new businesses: the cost of capital. This proactive approach by the state government underscores its commitment to nurturing a dynamic and competitive IT/ITeS landscape, ensuring that new businesses have the financial support needed to thrive in their formative years. The policy acknowledges the high capital requirements and initial operational costs associated with setting up large-scale IT/ITeS infrastructure, making this subsidy a strategic intervention to enhance the state's investment appeal and ensure sustainable growth in the digital economy.
Eligibility
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Full eligibility criteria — entity type, stage, sector, founder profile and registration requirements — plus your fit for this program. Sign up to view.
Subsidy providers
The Government of Uttar Pradesh is the state government of India's most populous state and a rapidly growing economic and entrepreneurial force. Through its IT & Electronics department and the UP Startup Policy, the state has committed to building a large, distributed startup…
Learn moreBenefits & Funding
- Amount
- Up to ₹5 Cr
What You Get
New IT/ITeS units in Uttar Pradesh are eligible to receive a significant 7% per annum interest subsidy on the term loans they secure from Scheduled Banks or recognized Financial Institutions. This subsidy is calculated on either the term loan amount or the actual interest paid, whichever is lower, ensuring fair and targeted support. The program provides substantial financial relief, capping the benefit at a maximum of ₹1 crore per annum per unit. This annual subsidy is available for a continuous period of 5 years starting from the date of commencement of commercial operations, offering long-term stability. The total maximum benefit over the five-year period can amount to ₹5 crore (₹50,000,000), significantly reducing the overall cost of capital for eligible enterprises. This direct financial incentive helps new units manage their debt servicing costs more effectively, freeing up capital for growth, innovation, and job creation within the state.
- Disbursement
- Reimbursement
- Duration
- 61 months
- Bootstrap friendly
- Yes
Timelines & Process
Applications
Rolling basis
Selection Process
The selection process for the Interest Subsidy involves a multi-stage evaluation. After initial application submission, the Department of IT & Electronics, Government of Uttar Pradesh, or its nodal agency, conducts a thorough screening of all submitted documents to verify eligibility criteria, including the unit's registration, Fixed Capital Investment, and loan sanction details. This is followed by a detailed assessment of the project's viability and compliance with the IT and ITeS Policy of Uttar Pradesh 2022. A dedicated committee or a panel of experts reviews the applications and may conduct site visits or request additional information to ensure all conditions are met before recommending approval for the subsidy.
How to apply
Four steps from draft to disbursement — one action each.
- 1
Submit on the official portal
Use the official application link and verify all details before final submission.
- 2
Follow up
Reach out 5–7 days after submitting to confirm receipt and ask about the review timeline.
Program templates & documents
Files the program publishes for applicants — download these and apply in the prescribed format.
Frequently Asked Questions
Who is eligible for this interest subsidy?
New IT/ITeS units that have obtained term loans from Scheduled Banks/Financial Institutions and have made a minimum Fixed Capital Investment of ₹2 crore are eligible. The subsidy is applicable from the commencement of their commercial operations.
What is the rate of interest subsidy provided?
The subsidy is provided at 7% per annum on the term loan amount or the actual interest paid, whichever is lower.
What is the maximum amount of subsidy a unit can receive?
A unit can receive a maximum interest subsidy of ₹1 crore per annum for a period of 5 years, totaling up to ₹5 crore over the entire duration of the benefit.
For how long is the interest subsidy available?
The subsidy is available for a period of 5 years from the date of commencement of commercial operations of the new IT/ITeS unit.
Does this subsidy require the unit to be recognized under the Uttar Pradesh Startup Policy?
Yes, as this incentive is part of the broader IT and ITeS Policy of Uttar Pradesh 2022, adherence to state policies for industrial promotion, which may include startup policies or specific IT/ITeS unit registrations, is often required.
What kind of loans are eligible for this subsidy?
Term loans obtained from Scheduled Banks and recognized Financial Institutions are eligible for this interest subsidy. The policy aims to support capital expenditure for new units setting up in Uttar Pradesh.
Sources
Data on this page is compiled from official program and provider references.
