MSME Interest Subsidy & Stamp Duty / Electricity Duty Exemption under Karnataka Industrial Policy
Interest subsidy for micro and small enterprises (loans from public sector banks) and interest subsidy up to 10% on technology upgradation loans for 5 years; exemption from stamp duty and concessional registration charges (100% stamp duty exemption for MSMEs in Zone 1 and Zone 2); reimbursement of land conversion fee (100% in Zones 1-2); exemption on electricity tariff/duty and power subsidy for MSMEs.
Eligibility
- Micro and small manufacturing enterprises in Karnataka
- Interest subsidy on eligible term/technology-upgradation loans
- Stamp duty exemption and land-conversion-fee reimbursement enhanced in Zones 1-2
How to apply
Apply to the Department of Industries and Commerce / District Industries Centre (through investkarnataka.co.in / single-window) with the investment subsidy application.
Required documents
- Udyam registration
- Term loan sanction & interest payment proof
- Stamp duty / registration and land conversion payment receipts
- Electricity bills
Official sources
Verification notes
Interest subsidy (up to 10% on technology upgradation loans; 3% p.a. for micro/small on PSB loans in 2020-25 policy), 100% stamp duty exemption Zones 1-2, land conversion fee reimbursement and electricity/power benefits. Verify exact rates, ceilings and current policy version (2020-25 vs 2025-30) against the official Invest Karnataka policy PDF. [AI-gathered from official sources on 2026-07-05; needs team review]