Deen Dayal Upadhyaya Swawlamban Yojana 2026: 40% Capital Subsidy & Startup Loans

At a glance

About the scheme

Implemented by the Department of Finance, Planning & Investment, Government of Arunachal Pradesh, the Deen Dayal Upadhyaya Swawlamban Yojana (DDUSY) aims to foster entrepreneurship among unemployed youth by backing viable, bankable business ventures. The scheme coordinates with scheduled commercial banks through District Level Screening Committees to offer credit access alongside front-ended capital subsidies. Additionally, the Arunachal Pradesh Innovation & Investment Park (APIIP) acts as an incubation partner, recommending selected startups from the state entrepreneurship development programme under a dedicated quota.

Benefits

• 40% front-ended capital investment subsidy for establishing small and medium enterprises.
• Bank loans ranging from ₹10,00,000 to ₹50,00,000 for total project costs (excluding land and building).
• Additional 5% annual interest subsidy for women entrepreneurs, provided the loan account does not turn into an NPA.
• Loan coverage under CGTMSE, which relieves the borrower from compulsory collateral requirements if guarantee fees are paid.
• Incubation, handholding, and recommendation support for select startups through the Arunachal Pradesh Innovation & Investment Park (APIIP).

Who can apply (eligibility)

• The applicant must belong to Arunachal Pradesh (APST entrepreneur).
• Must be an unemployed individual.
• Age must be between 18 and 45 years.
• Minimum educational qualification must be Class 12 passed or its equivalent (10+2).
• Must present a viable, bankable project proposal in approved sectors like food-processing, eco-tourism, traditional textile weaving, small-scale manufacturing, or diagnostics.
• The applicant must contribute at least 30% of the project cost as margin money (own contribution).
• Preference is given to candidates with ITI diplomas or degrees in Tourism, Hospitality, or IT, as well as units in border CD blocks.

Who cannot apply

• Costs incurred on land and building cannot be included in the project cost for subsidy calculation.
• Plantation activities are excluded; only value-addition activities in agri-horticulture and allied sectors are eligible.
• Entrepreneurs whose loan accounts become Non-Performing Assets (NPAs) lose eligibility for the annual interest subsidy.

Documents required

• Proof of Identity (Aadhaar Card)
• Proof of Residence
• Proof of Business Address
• Arunachal Pradesh Scheduled Tribe (APST) Certificate
• Class 12 Passing Certificate / Marksheet
• No Dues Certificate from Arunachal Pradesh State Co-Operative Apex Bank
• Trading Licence and GST Certificate
• Bank account details for loan processing
• Concept Note / Detailed Project Report (DPR) explaining the business proposal

How to apply

1. 1Open the official portal at https://ddusyarunachal.in/ and click on the menu to select 'Register'.
2. 2Create your account by entering your name, email ID, phone number, username, and password.
3. 3Log in using your registered username or email and password.
4. 4Click on the link to fill up the DDUSY application form on your dashboard.
5. 5Fill in your basic details, district, business type, guarantor details, and first-year financial projections.
6. 6Upload scanned copies of your Aadhaar, address proof, APST certificate, and the Concept Note or DPR.
7. 7Verify all entered details, submit the application, and save the generated Application ID for status tracking.

Frequently asked questions