CLCSS — Credit Linked Capital Subsidy Scheme
Ministry of MSME · Central government
A 15% capital subsidy funds MSME technology upgradation for plant and machinery.
Open, rolling. Applications are accepted continuously — there is no deadline.
Key facts
- Subsidy amount
- Up to ₹15,00,000
- Instrument
- Subsidy
- Deadline
- Rolling
About this scheme
15% upfront capital subsidy is available on eligible institutional finance for acquiring new plant and machinery under technology upgradation. This applies to term loans up to ₹1 crore, with the subsidy amount credited directly to the loan account.
The benefit is restricted to sub-sectors and technologies approved by the Ministry. Only those categories explicitly listed by the Ministry qualify for the subsidy.
Who can apply
- Eligible business forms
- Not specified
- MSME categories accepted
- Micro, Small, Medium
- Udyam registration
- Not specified
- MSME registration
- Required
- DPIIT startup recognition
- Not specified
- GST registration
- Not specified
- Where the business may be based
- Not restricted
- Existing and new units are eligible. - The enterprise must be a Micro, Small and Medium enterprise (MSME). - The upgrade must pertain to technology in approved sub-sectors/products.
How to apply
- Verify that your sub-sector and the proposed machinery are listed on the CLCSS approved list, which is available at dcmsme.gov.in. - Contact a CLCSS-nodal bank or lending institution, carrying your project report that describes the technology upgrade. - The bank evaluates the loan application and, if it meets the criteria, approves the term loan and informs the nodal agency (SIDBI or NABARD, depending on your sector). - Provide the necessary documents: MSME registration, machinery quotations, balance sheets, and GST returns. - Upon disbursement, the lending institution deposits the 15% subsidy directly into your loan account. - Acquire the approved new machinery according to the sanctioned plan. - Repay the remaining loan to the bank following the agreed repayment schedule.
Frequently asked questions
What is CLCSS and who is it for?
Under the Credit Linked Capital Subsidy Scheme (CLCSS), MSMEs in approved sub-sectors receive a 15% upfront capital subsidy on institutional loans used to buy new plant and machinery for technology upgradation.
What is the maximum subsidy I can receive under CLCSS?
The subsidy equals 15% of the eligible loan amount, with the cap set at a term loan of ₹1 crore, so the maximum support per enterprise is ₹15 lakh (₹1,500,000).
Which sectors and technologies are eligible under CLCSS?
The CLCSS is restricted to sub-sectors and technologies approved by the Ministry of MSME, covering areas such as food processing, textiles, auto components, and pharmaceuticals. Consult the official DCMSME website for the current approved list prior to applying.
Is equity taken or is this a repayable loan?
The subsidy component (15% of the loan) is a non-repayable upfront benefit credited directly to your loan account, reducing your effective principal. The remaining loan amount is repayable as a normal term loan, with no equity taken.
Can new businesses apply, or only existing MSMEs?
Existing and new MSMEs that carry out technology upgradation in approved sub-sectors are eligible to apply.
How is the subsidy disbursed?
The subsidy is credited directly to your term loan account by the lending institution once the loan is sanctioned and the eligible machinery is purchased, reducing your outstanding principal from the outset.
Details last verified on 3 August 2026. Source: the issuer's published information.