In order to financially assist entrepreneurs and invite industries, Uttar Pradesh Government provides units/enterprises Interest Free Loans under Industrial Investment Promotion Scheme of 2003. Fourth amendment to this scheme was done in 2011.
Amount of Loan:
- The amount of loan given under this scheme is equal to the amount paid as VAT (Value Added Tax) and CST (Central Sales Tax) by an enterprise. (Simply means if your unit has paid let’s say ₹ 1 crore as VAT and CST then you can get ₹ 1 crore of loan.)
- Or, the loan amount is equal to 10% of the sales an enterprise has made through sales/business in the first year of that enterprise. (It means if your enterprise has made sales of let’s say ₹ 5 crore then you can get 10% of ₹ 5 crore which is- ₹ 50 Lakh as loan)
- New industrial units with first date of sale on or after 11/03/2003
- Industries whose investment in land, building, Plant, Machinery and capital goods on first date of sale is not less than the below-
1. ₹ 5 crore in agro processing units
2. ₹ 10 crore in Eastern U.P. and Bundelkhand.
3. ₹ 25 crore in units not covered in clause 1 and 2 above
Tenure of Loan:
- 10 Years in case of units other than pioneer units.
- 15 Years in case of pioneer units (CLICK HERE for eligibility of pioneer units)
Repayments of Loan:
- 7 Years from the date ( in case of non-pioneer units)
- 10 Years from the date the loan is provided (in case of pioneer units)
How to avail:
Application is to be submitted to MD of PICUP (Pradeshiya Industrial and Investment Corporation of UP) or UPFC (Uttar Pradesh Financial Corporation) by September 30th each year. Although, startups those fail to apply on the deadline can still apply for this loan however, loan amount is provided for the remaining period after peer reviewing over delaying in application.
For more information CLICK HERE
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