§1Who it is for

  • New micro enterprises with a term loan

Useful if

Micro manufacturers with bank term loans.

Do not spend time on it if

Small/medium units.

§2Eligibility

  1. Only micro units

Registered unit

  1. SC/ST/women unit = fully owned by, or at least 51% share capital held by, entrepreneurs of that category

§3Benefits

  • 50% of interest paid (60% for SC/ST/women), up to ₹25 lakh per unit over 5 years

§4Norms — pattern of assistance

  1. 50% of interest payable, annually for 5 years, ceiling ₹25 lakh per unit
  2. SC/ST/women: 60%, same ceiling
  3. Claimed annually after full payment of interest

Land cost not counted

  1. Infrastructure interest subsidy for approved MSME parks/estates/flatted factories (10 acres+, flatted min 4,000 sq m): up to 50%, max ₹2 crore a year, for 7 years

§5Documents

Not published

The guideline does not list the documents. Ask the portal or bank before you apply — we do not make up lists.

§6How to apply

  1. 1

    Apply on DI UP MSME portal - beneficiary section

§7Pros and cons

Merits

  • Large cap (₹25 lakh) for a micro unit

Demerits

  • Small and medium units get no interest subsidy
  • Reimbursed only after interest is fully paid

→Related schemes

Need help with UP micro interest subsidy?

Eligibility check, DPR and application file — ask us on WhatsApp.

WhatsApp usServices

Our interestHelp is our paid service. You can also apply for the scheme yourself.

Sources

  1. UP MSME Promotion Policy 2022 - English translation (MSME 1-Connect)
  2. MSME 1-Connect UP - Interest Subsidy under MSME page

Checked on 18 October 2026. For information only — confirm with the department or bank. Spotted a mistake? Report it.