Scheme for assistance for Start Ups/ Innovation: Interest Subsidy
1–9% interest subsidy on term loans · Gujarat startups
Gujarat startups with innovative ideas can get an additional 1% interest subsidy on term loans taken under the state's MSME assistance scheme, bringing the total effective subsidy up to 9% — reducing the cost of borrowing for early-stage growth. The startup must be recommended by an approved Nodal Institution. Apply online at startup.gujarat.gov.in.
About This Scheme
Gujarat startups with innovative ideas can get an additional 1% interest subsidy on term loans taken under the state's MSME assistance scheme, bringing the total effective subsidy up to 9% — reducing the cost of borrowing for early-stage growth. The startup must be recommended by an approved Nodal Institution. Apply online at startup.gujarat.gov.in.
Full official description
The "Scheme for Assistance for Start Ups/ Innovation" is an umbrella scheme launched by the Industries and Mines Department, Gujarat under the Gujarat Industrial Policy. Effective from August 7th, 2020 to August 6th, 2025, it aims to drive economic growth by generating jobs, fostering competition, and introducing next-gen solutions. The component "Interest Subsidy" provides financial support to startups with innovative ideas across various sectors. Startups approved under this scheme are eligible for an additional interest subsidy of 1%, up to a maximum of 9%, on term loans for MSME assistance.
Benefits
- Additional 1% interest subsidy on term loans taken under Gujarat's MSME assistance scheme
- Maximum total interest subsidy (combined with MSME scheme benefits): up to 9%
- Effectively reduces the cost of borrowing for Gujarat-based startups using term loans for growth or expansion
💡 Why Startups Should Care
Stacking this startup-specific interest subsidy on top of the general MSME interest subsidy schemes can push your total subsidy close to 9% — potentially making your term loan interest cost near zero for the subsidized period.
Who Can Apply (Eligibility)
- Any individual or group with an innovative idea, recommended by an approved Nodal Institution in Gujarat
- Open to startups in any sector: technology, healthcare, agriculture, engineering, and more
- Startups already benefiting under SSIP (Student Startup and Innovation Policy) are also eligible
- Entities formed by splitting or restructuring an existing business do not qualify as a startup
- Must not currently be availing benefits under any other Gujarat government startup scheme
Exclusions
- Entities formed by splitting or restructuring an existing business are not considered startups
How to Apply
- Visit startup.gujarat.gov.in and register/log in.
- Apply for this component alongside your term loan application.
- Submit registration proof as a startup/innovator and detailed project proposal.
- Attach a recommendation letter from your approved Nodal Institution.
- Submit for annual interest subsidy reimbursement.
Frequently Asked Questions
What is the objective of the "Scheme for Assistance for Start Ups/ Innovation"?
The "Scheme for Assistance for Start Ups/ Innovation" is an umbrella scheme launched by the Industries and Mines Department, Gujarat under the Gujarat Industrial Policy. Effective from August 7th, 2020 to August 6th, 2025, aims to drive economic growth by generating jobs, fostering competition, and introducing next-gen solutions.
What is the objective of the "Interest Subsidy" component?
The component "Interest Subsidy" provides financial support to startups with innovative ideas across various sectors. Startups approved under this scheme are eligible for an additional interest subsidy of 1%, up to a maximum of 9%, on term loans for MSME assistance.
What is the maximum interest subsidy available under the scheme?
The maximum interest subsidy available under the scheme is 9% on term loans.
Who is eligible to apply for the scheme?
Any individual or group of individuals with an innovative idea or concept that is recommended by an approved Nodal Institution is eligible to apply for the scheme.
Are startups in all sectors eligible for the scheme?
Yes, the scheme is sector-agnostic and supports innovative projects across all sectors, including science, technology, agriculture, engineering, and healthcare.
Can startups availing benefits under the Student Startup and Innovation Policy (SSIP) apply for this scheme?
Yes, startups benefiting under SSIP are also eligible to avail assistance under this scheme.
Can startups formed by splitting or reconstructing an existing business apply?
No, startups formed by splitting or reconstructing an existing business are not eligible for the scheme.
Are startups already availing incentives under other Gujarat startup schemes eligible?
No, startups availing incentives under other Gujarat Government startup schemes, except SSIP, are not eligible for this scheme.
What is the role of the Nodal Institution in this scheme?
The Nodal Institution evaluates, validates, and recommends startup project proposals to the Office of the Industries Commissioner for approval.
Are there any restrictions on the type of innovation supported by the scheme?
No, the scheme supports all kinds of innovation, regardless of the sector, making it inclusive and sector-agnostic.
Ready to apply?
Visit the official government portal to apply for this scheme.
Apply on myScheme.gov.inDocuments Required
- Registration proof as a startup/innovator
- Detailed project proposal including innovative idea/concept
- Recommendation letter from the approved Nodal Institution
- Financial documents related to the term loan