CLCSS — Credit Linked Capital Subsidy Scheme
15% capital subsidy on technology upgradation for MSME plant & machinery
- Funding amount
- ₹15L (subsidy)
- Funding type
- Subsidy
- Provider
- Ministry of MSME (Government)
- Application deadline
- Rolling
- Eligible stage
- Any stage
- Location
- Open to startups registered in India
Overview
The Credit Linked Capital Subsidy Scheme (CLCSS) is a government initiative by the Ministry of MSME that offers a 15% upfront capital subsidy on institutional term loans used for technology upgradation. Specifically, it supports the purchase of new plant and machinery by micro, small, and medium enterprises. The subsidy is capped at ₹15 lakh for term loans up to ₹1 crore, and the amount is credited directly to the borrower's loan account, reducing the principal and lowering total interest. The scheme only applies to approved sub-sectors and technologies listed by the Ministry, making it a targeted tool for modernising manufacturing capacity without any equity dilution.
Highlights
- 15% upfront capital subsidy on term loans up to ₹1 crore for technology upgradation (maximum subsidy ₹15 lakh).
- Subsidy is credited directly to your loan account, reducing principal immediately.
- No equity dilution — it is a non-repayable government benefit.
- Both new and existing MSMEs in approved sub-sectors can apply.
- Covers a wide range of manufacturing sectors as per the Ministry of MSME's approved list.
- Application is ongoing with no fixed deadline (rolling / always open).
Who can apply
Micro, Small, and Medium Enterprises (MSMEs) that are upgrading technology by purchasing new plant and machinery in approved sub-sectors or products are eligible. Both existing units and new units can apply. The enterprise must operate in a sub-sector and use a technology that appears on the Ministry of MSME's approved list, which is regularly updated and available on the DCMSME website.
CLCSS — Credit Linked Capital Subsidy Scheme is open to startups at any stage. It is open to startups registered anywhere in India.
- Eligible stage
- Any stage
- Location
- Open to startups registered in India
Deadline & timing
CLCSS — Credit Linked Capital Subsidy Scheme accepts applications on a rolling basis — there is no fixed cut-off date, so eligible startups can apply at any time. Because rolling programmes can pause without notice, confirm the window is still open on the official site before you start.
What the funding covers
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.
About the provider
CLCSS — Credit Linked Capital Subsidy Scheme is offered by Ministry of MSME, a government body. As a government-backed subsidy, it is publicly funded and open to eligible startups across India. You can verify current details and timelines on the provider's official website before applying.
Documents you’ll need
Before you apply to CLCSS — Credit Linked Capital Subsidy Scheme, keep the following documents ready:
- A pitch deck or short business plan describing the problem, product and traction
- Company registration documents and PAN
- Founder identification (PAN / Aadhaar) and brief profiles
- Recent financial statements or projections
- Product details — a demo, prototype or working link if available
Exact requirements are confirmed on the official application portal — treat this as a preparation checklist.
Who this is best for
CLCSS — Credit Linked Capital Subsidy Scheme is best suited for startups in India seeking non-dilutive funding of ₹15L. If that describes your startup, review the eligibility criteria above before applying.
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.
What documents are needed to apply?
You will typically need MSME registration, quotations for the new machinery, balance sheets, GST returns, and a project report describing the technology upgrade. Check with your nodal bank for the exact list.
Where can I apply for CLCSS?
You can apply by approaching a CLCSS-nodal bank or lending institution with your project report. The official scheme details and approved lists are available on dcmsme.gov.in.
How much funding does CLCSS — Credit Linked Capital Subsidy Scheme provide?
CLCSS — Credit Linked Capital Subsidy Scheme provides ₹15L (up to) as subsidy. Always confirm the exact amount and any conditions on the official site, as figures can change between cohorts.
What is the application deadline for CLCSS — Credit Linked Capital Subsidy Scheme?
CLCSS — Credit Linked Capital Subsidy Scheme runs on a rolling basis with no fixed deadline — applications are accepted on an ongoing basis. Check the official site to confirm the window is currently open.
Is DPIIT recognition required for CLCSS — Credit Linked Capital Subsidy Scheme?
No. DPIIT (Startup India) recognition is not listed as a mandatory requirement for CLCSS — Credit Linked Capital Subsidy Scheme, though having it can strengthen your application and unlock other benefits.
Who is eligible to apply for CLCSS — Credit Linked Capital Subsidy Scheme?
CLCSS — Credit Linked Capital Subsidy Scheme is open to startups at any stage. It is open to startups registered anywhere in India.
Who offers CLCSS — Credit Linked Capital Subsidy Scheme?
CLCSS — Credit Linked Capital Subsidy Scheme is offered by Ministry of MSME, a government body. It is provided as non-dilutive funding.
How do I apply for CLCSS — Credit Linked Capital Subsidy Scheme?
Apply directly through the official application link on this page. Review the eligibility criteria and prepare your startup documents before you begin.
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