THE CREDIT LANE
About this funding solution
Under the UP Micro, Small and Medium Enterprises Promotion Policy 2022, new MSME units get a capital subsidy of 10–25% depending on region — Bundelkhand and Purvanchal sit at the higher 15–25% band, while central and western UP (including the NCR-adjacent districts) are set at 10–20%, capped at ₹4 crore per unit, with a further 2% for SC/ST and women entrepreneurs.
Stamp duty exemption follows the same regional logic: 100% in Purvanchal and Bundelkhand, 75% in Madhyanchal and Paschimanchal, but only 50% in Gautam Buddh Nagar and Ghaziabad specifically — women entrepreneurs get 100% exemption anywhere in the state regardless of region.
New micro units also qualify for interest subvention of 50% on their loan's annual interest (60% for SC/ST and women entrepreneurs) for 5 years, capped at ₹25 lakh per unit, alongside a 7-year infrastructure interest subsidy for eligible projects.
*100% in Purvanchal/Bundelkhand, 75% in Madhyanchal/Paschimanchal, 50% in Gautam Buddh Nagar & Ghaziabad — 100% for women entrepreneurs statewide. Per UP MSME Promotion Policy 2022.
Who is this solution for?
For new MSME units being set up in UP — the benefit size depends materially on which region you're setting up in.
- Setting up a new micro, small or medium enterprise in Uttar Pradesh
- Want capital subsidy, stamp duty relief or interest subvention — or a combination
- Fall under SC/ST or women-entrepreneur categories for enhanced benefits
- Need infrastructure interest subsidy support for a new project
Why consider this funding route?
Region-tiered capital subsidy
10–25% subsidy on project cost, capped at ₹4Cr, based on district.
Stamp duty exemption
Up to 100% exemption on land/property registration, region-dependent.
5-year interest subvention
50–60% discount on annual loan interest, capped at ₹25L per unit.
7-year infra interest subsidy
Extended interest relief for eligible infrastructure investment.
How it works
Policy fit assessment
Region, category (general/SC-ST/women) and project cost mapped to applicable benefit tiers.
Application via single window
Application filed through Invest UP / Nivesh Mitra single-window portal.
Document verification
Project and eligibility documents verified by the district authority.
Sanction & disbursal
Capital subsidy, stamp duty relief and/or interest subvention sanctioned and released.
UP Policy Scheme Subsidy Estimator
Use the sliders below to get an indicative estimate. Final terms are subject to formal underwriting and lender / investor committee assessment.
Client experience
FAQs
The policy deliberately tiers benefits higher in less-industrialised regions (Purvanchal, Bundelkhand) to encourage investment there, versus already-developed NCR-adjacent districts like Ghaziabad and Gautam Buddh Nagar.
Yes, these are separate benefit heads under the same policy and can typically be availed together, subject to each head's own eligibility and caps.
Yes — the policy grants 100% stamp duty exemption to women entrepreneurs statewide, overriding the lower regional tier that would otherwise apply.
5 years for the standard capital interest subvention on new micro units (up to ₹25 lakh per unit), and 7 years for the separate infrastructure interest subsidy where applicable.
Check Eligibility
Submit details for UP Govt MSME Promotion Policy Scheme. Our desk reviews profile variables and calls you back the same working day.