CLCSS — Credit Linked Capital Subsidy Scheme
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Quick Answer
15% capital subsidy on technology upgradation for MSME plant & machinery
- Funding amount
- Up to ₹15 Lakhs
- Funding type
- Subsidy
- Provider
- Ministry of MSME
- Application deadline
- Rolling
- Location
- Open to startups registered in India
About this subsidy
15% upfront capital subsidy on eligible institutional finance for purchase of new plant & machinery (technology upgradation), for term loans up to ₹1 crore. Subsidy directly credited to the loan account. Applicable only to approved sub-sectors and technologies listed by the Ministry.
Eligibility
See if you're eligible
Full eligibility criteria — entity type, stage, sector, founder profile and registration requirements — plus your fit for this program. Sign up to view.
Subsidy providers
The Ministry of Micro, Small and Medium Enterprises (Ministry of MSME) is the Government of India ministry for the MSME sector. It does not run one programme. It runs a set of central schemes, each with its own portal and its own route in: a credit-linked subsidy for new…
Learn moreBenefits & Funding
- Amount
- Up to ₹15 Lakhs
What You Get
CLCSS provides a 15% upfront capital subsidy — up to ₹15 lakh — on eligible institutional term loans for purchasing new plant and machinery for technology upgradation. The subsidy is credited directly to the borrower''s loan account, immediately reducing the principal and lowering total interest outgo over the loan tenure. There is no equity dilution; it is a pure non-repayable government benefit. The scheme applies to both new and existing MSMEs in a wide range of approved manufacturing sub-sectors and technologies, making it a practical tool for modernising production capacity.
- Bootstrap friendly
- Yes
Timelines & Process
Applications
Rolling basis
Application Process
- 1
Obtain free Udyam Registration at udyamregistration.gov.in.
Obtain free Udyam Registration at udyamregistration.gov.in.
You - 2
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How to apply
Four steps from draft to disbursement — one action each.
- 1
See the questions before you start
Download every question this programme's application form asks, so you can prepare your answers offline before opening the portal.
- 2
Submit on the official portal
Use the official application link and verify all details before final submission.
- 3
Follow up
Reach out 5–7 days after submitting to confirm receipt and ask about the review timeline.
Frequently Asked Questions
What is CLCSS and who is it for?
The Credit Linked Capital Subsidy Scheme (CLCSS) provides a 15% upfront capital subsidy on institutional loans for technology upgradation — specifically for purchasing new plant and machinery — for Micro, Small and Medium Enterprises (MSMEs) operating in approved sub-sectors.
What is the maximum subsidy I can receive under CLCSS?
The subsidy is 15% of the eligible loan amount, capped at a term loan of ₹1 crore. This means the maximum subsidy is ₹15 lakh (₹1,500,000) per enterprise.
Which sectors and technologies are eligible under CLCSS?
CLCSS applies only to approved sub-sectors and specific technologies listed by the Ministry of MSME. Industries range from food processing and textiles to auto components and pharmaceuticals. Check the official DCMSME website for the updated approved list before applying.
Is equity taken or is this a repayable loan?
No equity is taken. The subsidy component (15% of 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.
Can new businesses apply, or only existing MSMEs?
Both existing and new MSMEs undertaking 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 after the loan is sanctioned and the eligible machinery is purchased. This reduces your outstanding principal from the outset.
Sources
Data on this page is compiled from official program and provider references.
