Government subsidy questions, answered

A capital subsidy is financial assistance provided directly for the purchase of capital equipment or assets as part of a project. An interest subsidy covers or reduces the interest payable on bank loans taken out for that project.

Yes. You can draw on multiple schemes for different components of a single project. If you set up a warehouse for food grains, you can claim a capital subsidy from NABARD for constructing it and, at the same time, an interest subsidy from the Agriculture Infrastructure Fund to lower your loan interest.

It depends on the funding structure. If the subsidy requires a bank loan, a DPR is mandatory as part of the loan application. For non-loan schemes, a DPR is generally not required unless the scheme guidelines say so.

For credit-linked schemes, yes. The government agency credits the subsidy directly into the loan account, reducing the outstanding principal. Non-credit-linked schemes do not need a loan.

Each scheme has its own guidelines, target industries and compliance requirements set out in its official document. Book a consultation and we will assess your project directly.

OTM suits a single, identified scheme processed end to end for a fixed fee. FSM suits businesses that want end-to-end support across every applicable subsidy, from application through disbursement, with most of the fee linked to results. See services and fees.

It varies by scheme and state, from a few months for smaller credit-linked subsidies to milestone-based disbursements over years for large negotiated packages. We give you a realistic timeline in the consultation and track every milestone after sign-up.