TUS Bank Loan & Financing: How the Interest Subsidy Works
Financing the Machinery
Most units fund their technology upgrade through a regular bank term loan — TUS doesn’t provide the loan itself, it subsidizes part of the interest you pay on it. You approach a bank of your choice, get the loan sanctioned on normal commercial terms, and then claim the subsidy separately.
How the Subsidy Applies
You get back 50% of the interest actually paid on that loan, capped at ₹1 lakh per year, for up to 5 years. This is claimed year-wise, against your loan account statement showing interest paid — it isn’t a discount applied upfront by the bank.
Does the subsidy reduce my EMI directly?
No — you continue paying the regular EMI to the bank. The subsidy is a separate reimbursement claimed against interest paid, not an automatic EMI reduction.
What if I prepay or foreclose the loan early?
Your interest subsidy would naturally stop once there’s no more interest being paid — confirm any specific foreclosure implications with your bank and the DIC before prepaying.
Want help planning your TUS loan and interest claim?
ClaimDesk (a NorthStar Advisors brand) handles the paperwork end-to-end. 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: diupmsme.upsdc.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.