CLCSS — Credit Linked Capital Subsidy Scheme
Ministry of MSME · Central government
A 15% capital subsidy funds technology upgradation of plant & machinery for MSMEs.
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
A 15% upfront capital subsidy is available on eligible institutional finance for acquiring new plant and machinery under technology upgradation. The subsidy applies to term loans up to ₹1 crore and is credited directly to the loan account.
This benefit is restricted to approved sub-sectors and technologies notified by the Ministry.
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 technology upgrade must be in an approved sub-sector or product.
How to apply
- Verify that your sub-sector and the proposed machinery are listed in the CLCSS approved list, which is accessible on dcmsme.gov.in. - Contact a CLCSS-nodal bank or lending institution, carrying your project report that outlines the technology upgrade. - The bank evaluates the loan application and, if it meets the criteria, approves the term loan, then informs the nodal agency (SIDBI or NABARD, depending on your sector). - Provide the necessary paperwork: MSME registration, machinery quotations, balance sheets, and GST returns. - Upon disbursal, the lending institution deposits the 15% subsidy directly into your loan account. - Acquire the approved new machinery in line with the sanctioned plan. - Repay the outstanding loan to the bank according to the agreed repayment terms.
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?
CLCSS is limited to sub-sectors and technologies approved by the Ministry of MSME, covering industries such as food processing, textiles, auto components, and pharmaceuticals. Consult the official DCMSME website for the current approved list before applying.
Is equity taken or is this a repayable loan?
No equity is taken. The 15% subsidy is credited upfront to your loan account as a non-repayable benefit, lowering the effective principal; the balance is repaid as a standard term loan.
Can new businesses apply, or only existing MSMEs?
Existing and new MSMEs that carry out technology upgradation in approved sub-sectors may apply.
How is the subsidy disbursed?
The subsidy is credited by the lending institution directly into your term loan account once the loan is sanctioned and the eligible machinery has been purchased, thereby lowering your outstanding principal from the start.
Details last verified on 7 September 2026. Source: the issuer's published information.