Capital subsidy reduces upfront project burden by offsetting part of your investment. It is usually more impactful for manufacturing expansion and new asset-heavy projects.

Interest subsidy reduces financing cost over time and improves cash flow management during early years of operations. It is often more useful for debt-driven growth plans.

The right choice depends on project size, debt ratio, and repayment runway. In many cases, combining both under permissible schemes creates the strongest funding strategy.