Punjab CLCSS Interest Top-up
Department of Industries & Commerce, Government of Punjab · Central government
Punjab's 5% interest subsidy funds units that have used up their CLCSS limit, paying up to INR 5 lakh yearly for 5 years alongside the central scheme.
Open, rolling. Applications are accepted continuously — there is no deadline.
Key facts
- Subsidy amount
- Up to ₹5,00,000
- Instrument
- Subsidy
- Deadline
- Rolling
- Disbursement
- Reimbursed after spend
About this scheme
Under Clause 12.8 A(4) of the Industrial and Business Development Policy 2022 of Punjab, state assistance is provided in addition to the Credit Linked Capital Subsidy Scheme run by the Government of India.
Units that qualify under CLCSS receive an interest subsidy of 5%, subject to a ceiling of INR 5 lakh annually, for a period of five years starting from the date of commercial production.
An important feature of this provision is that firms which have previously drawn CLCSS benefits and have fully used up its limit continue to be eligible for this extra state benefit on identical terms. The state support is not adjusted against the amount already disbursed by the central government.
Who can apply
- Eligible business forms
- Not specified
- Udyam registration
- Not specified
- MSME registration
- Required
- DPIIT startup recognition
- Not specified
- GST registration
- Not specified
- Where the business may be based
- Punjab
- MSME unit located in Punjab, eligible under the central CLCSS scheme - Covers units that have previously availed CLCSS and exhausted its limit - Benefit period reckoned from the date of commercial production
How to apply
1. Obtain Udyam registration as an MSME and confirm that the term loan meets CLCSS eligibility criteria. 2. File the application through the Invest Punjab Business First portal under the Industrial and Business Development Policy 2022. 3. Provide the CLCSS sanction or utilisation record, the date of commercial production, and the bank's annual interest certificate.
Frequently asked questions
Do I lose this if I already took CLCSS?
No. A company that has already used CLCSS and reached its limit can still claim this additional state benefit, subject to the same conditions.
How much and for how long?
The scheme provides a 5% interest subsidy of up to INR 5 lakh per year, payable for five years starting from the date of commercial production.
Who qualifies?
MSME units that meet the eligibility criteria laid down under the central CLCSS scheme can apply for its benefits.
Sectors
- Punjab
- Msme
- Clcss
- Interest Subsidy
- Technology Upgradation
- Industrial Policy 2022
Details last verified on 18 September 2026. Source: the issuer's published information.