SubsidyIndustries & Commerce Department, Government of Andhra PradeshVerified 20 May 2026Official source stacks with APSFC Loan · ₹55L combined

AP MSME Policy 4.0 — Interest Subsidy

The AP MSME Policy 4.0 provides interest subsidies to MSMEs in Andhra Pradesh. General category units can receive a 7% annual reimbursement on term loan interest, while special categories can receive up to 10%. The scheme supports investment in fixed capital to boost industrial growth.

Maximum amount
₹2.5Cr
Typical payout
₹4.0L
Processing time
3–24 weeks
Application window
Open year-round

Check if your startup qualifies for AP MSME Policy 4.0 — Interest Subsidy

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Eligibility criteria

Company type
Private Limited, LLP, Proprietorship, Partnership Firm
Stage
Early Stage (Revenue < ₹1Cr), Growth Stage (₹1Cr–₹25Cr), Scaling (₹25Cr+)
States
Andhra Pradesh
Sectors
manufacturing, food_processing, textile, chemicals, engineering, agritech, pharma, other
Prerequisites
  • Udyam (MSME) registration required

Documents required

1
Udyam Registration Certificate
Mandatory for verifying MSME status of the enterprise.
Tip: Ensure registration is up-to-date on the Udyam portal.
2
Incorporation/Partnership Deeds
Required to confirm the legal structure and registration of the business.
Tip: Keep original and digital copies ready for submission.
3
Term Loan Sanction Letter
Mandatory letter indicating approval of the loan by a recognized financial institution.
Tip: Ensure it is from a scheduled commercial bank or state financial institution.
4
Bank-Certified Interest Payment Certificate and Amortization Schedule
Certificate and schedule detailing the interest repaid. Required for reimbursement.
Tip: Check with your bank for any specific forms needed.
5
Commencement of Commercial Production (CoD) Certificate
Evidence of the start of commercial operations as recognized by authorities.
Tip: Acquire this from the relevant local authority upon initiation of production.
6
Fixed Capital Investment (FCI) Valuation Report
Details of investments in land, buildings, and machinery.
Tip: Have an authorized appraiser prepare this report.
7
Power Supply Connection Document
Proof of official industrial power connection.
Tip: Submit the first industrial power utility bill if document is unavailable.
8
Social Category/Caste Certificate
Conditional document for SC, ST, BC, or Minority entrepreneurs seeking higher subsidy.
Tip: Obtain this from a recognized governmental authority.
9
Valid Disability Certificate
For specially-abled entrepreneurs applying for enhanced benefits.
Tip: Ensure it is issued by a competent medical board.
10
Non-Judicial Indemnity Bond
Bond on stamp paper agreeing to terms and clawback clauses.
Tip: Consult legal assistance to draft appropriately.
11
Previous Sanction Letters
For top-ups under sector-specific policies like Food Processing Policy 4.0.
Tip: Keep copies of any prior sanction letters related to subsidies.
12
CA Certification for FCI Calculations
Certification of investment calculations and interest worksheet verification.
Tip: Engage a Chartered Accountant for accurate evaluation.

How to apply for AP MSME Interest

1
Register on the Andhra Pradesh Single Desk Portal (AP SDP) and set up a corporate profile.Open portal
2
Access the online incentive management sub-module for Interest Subsidy/ Reimbursement.Open portal
3
Complete the Self-Computation Sheet for Eligible Interest Subsidy and submit all required documents.Open portal
4
Submit the request to generate a tracking ID with the District Industries Centre.

Frequently asked questions

Who is eligible for AP MSME Interest?

AP MSME Interest is available to Private Limited, LLP, Proprietorship, Partnership Firm companies at the Early Stage (Revenue < ₹1Cr), Growth Stage (₹1Cr–₹25Cr), Scaling (₹25Cr+) stage, across Andhra Pradesh. Udyam (MSME) registration is required.

How much funding does AP MSME Interest provide?

AP MSME Interest provides up to ₹2.5Cr. Most applicants receive around ₹4.0L.

How long does AP MSME Interest approval take?

The typical processing time from submission to disbursement is 3–24 weeks.

Is AP MSME Interest currently accepting applications?

Yes, AP MSME Interest is currently active and accepting applications. Application window: Open year-round.

Do I need Udyam registration for AP MSME Interest?

Yes, Udyam (MSME) registration is required. Register at udyamregistration.gov.in before applying.

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Information is based on publicly available scheme guidelines. Last verified 20 May 2026. Always verify with official sources before applying.