SCLCSS — Special Credit Linked Capital Subsidy Scheme for SC/ST Entrepreneurs
Ministry of MSME · Central government
25% capital subsidy for SC/ST-owned MSEs on technology upgradation.
Open, rolling. Applications are accepted continuously — there is no deadline.
Key facts
- Subsidy amount
- Up to ₹25,00,000
- Instrument
- Subsidy
- Deadline
- Rolling
About this scheme
25% upfront capital subsidy on eligible plant and machinery is available to MSEs owned by SC/ST entrepreneurs, exceeding the 15% general CLCSS rate. The subsidy is capped at ₹25 lakh per enterprise. This support is administered under the National SC-ST Hub (NSIC).
Who can apply
- Eligible business forms
- Not specified
- MSME categories accepted
- Micro, Small
- Udyam registration
- Not specified
- MSME registration
- Required
- DPIIT startup recognition
- Not specified
- GST registration
- Not specified
- Where the business may be based
- Not restricted
- Promoter must hold majority ownership and active management control of the enterprise. - Enterprise must be classified as a Micro or Small Enterprise under the Udyam registration framework. - Ownership must be held by individuals belonging to Scheduled Caste (SC) or Scheduled Tribe (ST) categories.
How to apply
- First, confirm that your enterprise’s sub-sector and the machinery you intend to acquire are listed on the CLCSS/SCLCSS approved list, which is available at dcmsme.gov.in and scsthub.in. - Next, contact NSIC or any lending institution empanelled with NSIC, presenting your business plan and the proposal for technology upgradation. - Furnish documentation proving SC/ST ownership, including a caste certificate, evidence of majority promoter holding, MSME/Udyam registration, and quotations for the machinery. - The lender will then evaluate and sanction the term loan, while NSIC handles the processing of the subsidy claim. - Upon disbursement, the 25% subsidy, capped at ₹25 lakh, is transferred directly into your loan account. - Procure the approved new plant and machinery in line with the sanctioned plan. - Finally, repay the remaining loan amount according to the agreed repayment schedule.
Frequently asked questions
What is SCLCSS and how is it different from CLCSS?
The Special Credit Linked Capital Subsidy Scheme (SCLCSS) is a variant of CLCSS for Micro and Small Enterprises owned by SC/ST entrepreneurs, offering a 25% subsidy (compared to 15% under general CLCSS) up to a ceiling of ₹25 lakh. It is administered through the National SC-ST Hub (NSIC).
Who is eligible for SCLCSS?
Entrepreneurs from SC/ST communities who own and actively manage a Micro or Small Enterprise (in manufacturing or services) qualify, provided the SC/ST promoter holds majority ownership and exercises active management control.
What is the maximum subsidy under SCLCSS?
The maximum capital subsidy is 25% of the eligible plant and machinery investment, capped at ₹25 lakh (₹2,500,000) per enterprise.
Is equity taken or is this a repayable scheme?
The subsidy is a non-repayable government benefit of 25%, credited directly to your loan account, with no equity taken. The remaining loan amount must be repaid to the lending institution.
Which technologies and sub-sectors are covered?
Confirm your machinery and sub-sector against the Ministry of MSME's approved list, as SCLCSS uses the same sub-sector and technology list as the regular CLCSS. Verify eligibility before applying.
How do I apply for SCLCSS?
Apply through NSIC or an NSIC-approved nodal lending institution, with the application process and empanelled banks detailed on scsthub.in. You must submit proof of SC/ST ownership, MSME registration, and the project report for machinery purchase.
Details last verified on 3 August 2026. Source: the issuer's published information.