Department of Industries & Commerce, Karnataka
Karnataka IncentivesKarnataka Industrial Policy Incentives
Capital subsidy, interest subsidy, stamp-duty and power-tariff concessions — on top of central schemes.
New and expanding manufacturing units in Karnataka — especially in backward taluks and for women, SC/ST entrepreneurs.
What you get
- Capital investment subsidy on plant & machinery
- Interest subsidy on term loans for eligible units
- Stamp duty and registration fee concessions
- Extra benefits for women, SC/ST and units in backward taluks
Who can apply
- Udyam-registered unit located in Karnataka
- Commercial production started within the policy period
- Benefit level depends on your taluk's zone and category
Step-by-step process
- 1Check your taluk's zone
- 2List every incentive you qualify for
- 3File claims with DIC
- 4Follow up till release
Documents needed
Calculate
Business Loan EMI Calculator
Monthly EMI, total interest and year-by-year repayment.
MSME loans usually range from 8.5% to 14% depending on bank and profile.
for 84 months
With PMEGP / PMFME subsidy, the subsidy amount is adjusted against this loan — your real repayment is lower.
Also consider
Schemes that work well with this one
Start a new manufacturing or service unit and get up to 35% of the project cost as a government subsidy.
- ₹50 L
- Max project · manufacturing
- ₹20 L
- Max project · service
- 5–10%
- Your own contribution
Collateral-free loans up to ₹20 lakh for shops, traders, small manufacturers and service businesses.
- ₹50 K
- Shishu
- ₹5 L
- Kishore
- ₹10–20 L
- Tarun / Tarun Plus
Get a bank loan without pledging your house or land — the government guarantees it for you.
- 75–90%
- Guarantee cover
- 0
- Property to mortgage
- MSE
- New & existing units
Scheme details are summarised from official guidelines and may change. Final eligibility, loan amount and subsidy are decided by the bank and the implementing agency.