FAQS

Q1. What is the difference between capital and interest subsidy?

Capital subsidy is financial assistance provided directly for the purchase of capital equipment or assets as part of a project. Interest subsidy, on the other hand, is provided to cover or reduce the interest payable on bank loans taken out for that project.

Q2. Can I avail subsidies or benefits from more than one scheme for the same project?

Yes. You can absolutely leverage multiple schemes for different components of a single project.

Example: If you set up a warehouse for storing food grains, you can claim a capital subsidy from NABARD for constructing the warehouse, and simultaneously claim an interest subsidy from the Agriculture Infrastructure Fund (AIF) to lower your bank loan interest payments.

Q3. Is it mandatory to have a Detailed Project Report (DPR) to avail a subsidy?

    It depends on the funding structure:

• Bank-Linked Schemes: If the subsidy scheme requires a bank loan, a DPR is mandatory as part of your bank loan application process.
• Non-Loan Schemes: If the scheme does not require a bank loan, a DPR is generally not required unless explicitly stated in the specific scheme guidelines.

Q4. Do I need to take a bank loan to avail subsidies?

For credit-linked subsidy schemes, yes, a bank loan is required. In these cases, the Government agency will credit the subsidy amount directly into your bank loan account, which effectively reduces your outstanding principal amount. For non-credit-linked schemes, a bank loan is not necessary.

Q5. How do I know if my project is eligible for incentives under a specific scheme?

Each subsidy scheme has distinct guidelines, target industries, and compliance requirements outlined in its official scheme document.

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