50% Interest Subsidy for Micro Units

Up to 50% of loan interest back, for 5 yearsUP MSME PolicyMicro UnitsUp to 5 YearsLast reviewed: Aug 2026

What is the Scheme?

Under UP's MSME policy, micro units get back a share (up to 50%) of the interest paid on a bank loan every year — for up to 5 years, with an annual cap. If you have a running loan, this works like straight cash-back.

How Much Money Will You Get?

What	How Much (approx.)
Interest reimbursement	Up to 50% of interest paid
Duration	Up to 5 years
Cap	Annual cap as per policy (in lakhs)

Please verify: Subsidy rates and rules can change with policy updates. Before applying, be sure to check the current guidelines on the official portal.

Eligibility

Udyam-registered micro unit (within the investment/turnover limit)
A term loan or working capital taken from a bank/FI (as per policy)
The loan account must be standard — not an NPA
Interest should have been paid on time

Documents Required

Udyam certificate, loan sanction letter
Interest certificate from the bank (how much interest was paid)
Loan account statement, GST/ITR

How to Apply

Fill the claim application on the UP MSME portal
Upload the bank interest certificate
DIEPC verification → committee → reimbursement to your account
The claim must be renewed/filed every year

This claim has to be repeated every year — those who forget to file after the first year miss out on their money. Set a reminder.

Frequently Asked Questions

Does it apply to interest on a CC limit too?

The policy focuses on term loans; working capital rules can differ — verify the current guidelines.

What happens if the account becomes an NPA?

Claims on NPA accounts are generally rejected. Keeping the account standard is a condition for eligibility.

Need help filing an interest subsidy claim?

ClaimDesk (A NorthStar Advisors brand, Noida) handles everything from documentation to filing and follow-up. The first conversation is completely free.

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MSMEUP.com is independent information & tools — free, and not run by any consultancy. ClaimDesk is a separate, private consultancy (a NorthStar Advisors brand) for those who want professional filing help; its fee is for that service, not a government charge, and using it is entirely optional — MSMEUP's guides and tools work the same with or without it.

Official Source
Official portal: msme.up.gov.in Last reviewed: Aug 2026

This page summarizes publicly available scheme information. For the current official notification, application form and exact eligibility conditions, always confirm on the portal above before applying or filing a claim.