Credit-Linked Capital Subsidy Scheme (CLCSS)
Ministry of MSME All Sectors GOVERNMENT SUPPORT ACTIVE

Credit-Linked Capital Subsidy Scheme (CLCSS)

(Ministry of MSME)
Primary Benefit

15% Upfront Capital Subsidy (Max Rs.15 Lakh on Credit up to Rs.1 Crore)

<p>Technology upgrade in manufacturing and supply chain for MSMEs.</p>

Dynamic Subsidy Scaling Matrices

Under the official guidelines of this scheme, final margin money subsidies scale dynamically based on your gender, region of business setup, and social categories. Below is the detailed rate catalog:

Gender-Based Subsidy
Men 15%
Women 15%
Regional Demographics
Rural 15%
Urban 15%
Hill Areas 15%
Caste / Social Groups
SC Group 15%
ST Group 15%
OBC Group 15%
General 15%

Benefits Details

  • 15% upfront capital subsidy — maximum Rs.15 lakh
  • On credit facility up to Rs.1 crore for technology upgrade
  • Covers machinery, equipment, and technology adoption
  • Applicable to approved sub-sectors listed under scheme
  • Reduces cost of technology modernization for MSMEs

Who can apply?

Any individual meeting the following guidelines is eligible for applying under this scheme:

Target Beneficiary Eligibility Criteria
Age Limit Min Age: 18 years old. No upper age limits.
Target Gender Suitable for Any category of applicants.
Men: 15% Women: 15%
Category Required Existing MSMEs in approved sub-sectors
SC: 15% ST: 15% OBC: 15% General: 15%
Location Cover Any Areas.
Rural: 15% Urban: 15% Hill Areas: 15%
State Cover Applicable across all states of India.

Application Workflow Process

  • Apply through bank / financial institution
  • Bank submits application to SIDBI / SBI (nodal banks)
  • Claim verified by technology expert
  • Subsidy released upfront to the loan account
  • MSME repays reduced principal post subsidy
1
Online Submission

Submit your promoter profile and bank-ready DPR details on the official nodal portal.

2
Nodal Review

Department agency verifies your details and forwards recommendation to local banks.

3
Bank Sanction

Bank evaluates credit feasibility and sanctions the term loan and working capital.

4
Subsidy Release

Nodal agency releases capital margin money subsidy to a TDR block accounts.

Required Documents Checklist

Keep the following digital copies ready before filling out the online application form:

  • Udyam Registration certificate
  • PAN / Aadhaar
  • Bank loan sanction letter
  • Technology / machinery quotation
  • Audited financials
  • Existing unit proof

Frequently Asked Questions

No. Government support programs are strictly intended for setting up **new** micro enterprises and commercial expansions. Existing units availing of other programs are not eligible.

The program offers margin capital subsidy. However, bank credit interest schedules will be charged at standard commercial base lending rates unless supplemented by state interest refund policies.

The Entrepreneurship Development Programme (EDP) training course is mandatory for all subsidy releases and takes around 5 to 10 days depending on the project investment scale.
Quick Info
Ministry Ministry of MSME
Category All Sectors
Max Subsidy 15%
Max Amount ₹1,500,000
Status Active
Need Help?

Contact your local District Industries Centre (DIC) or Sri Yojana support desk for guidance and project filing support.

Request Guidance
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credit-linked-capital-subsidy-scheme-clcss subsidy micro-enterprise