Interest Subsidy Calculation: How It's Worked Out
How the Amount Is Calculated
Each year, the subsidy is calculated as 50% (or 60% for SC/ST and women entrepreneurs) of the actual interest you paid your bank on the eligible loan during that period — reimbursed against your bank's interest certificate, subject to the overall ₹25 lakh per-unit cap.
| Example | Interest Paid (Year) | Subsidy (50%) | Subsidy (60%, SC/ST/Women) |
|---|---|---|---|
| Micro unit, general category | ₹2,00,000 | ₹1,00,000 | — |
| Micro unit, SC/ST or woman-owned | ₹2,00,000 | — | ₹1,20,000 |
Use the interest subsidy calculator for your own numbers.
Is the subsidy calculated on the principal or the interest paid?
On the interest paid — this scheme reimburses a percentage of interest, not principal.
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.
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 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.