Credit Linked Capital Subsidy Scheme (CLCSS)

Credit Linked Capital Subsidy Scheme(CLCSS) is a central government subsidy, provided for purchase of Machinery against Bank Term Loan. Subsidy of 15% is provided on the cost of Machinery purchased. The subsidy, when approved is reduced from the Bank Loan amount thus reducing your Bank Loan and the interest.

Benefits of Credit Linked Capital Subsidy Scheme (CLCSS)

Reduced Cost of Machinery

Financial Support from Government

Reduced cost of Borrowing

Promotion to Business Growth

Eligibility for Credit Linked Capital Subsidy Scheme (CLCSS)

The unit should have taken term loan for purchase of Machinery.
The machinery should form part of the notified list of Machineries.
The maximum margin (self-contribution) for the Term Loan should be 30% of the cost of Machinery.
The last date of disbursement of loan should be after 01.04.2017.

Documents required for Credit Linked Capital Subsidy Scheme (CLCSS)

KYC Details of Proprietor/Partners/Directors
PAN Card of Partnership Firm/Company
Partnership Registration Certificate/Certificate of Incorporation
Udyog Aadhar
Bank Loan Sanction Letter
Loan Disbursement Schedule
Invoices of Machinery purchased against Bank Loan
6 Blank Letterheads of the Business Unit
3 Non Judicial Revenue Stamps of Rs 100 each
Maharashtra Pollution Control Board (MPCB) Certificate (if applicable)

Additional Details required for Application :

Trade Name, Date of Commencement and Nature of Business
Type of Entity (New/Existing)
Contact number & Email Id

FAQ on Credit Linked Capital Subsidy Scheme (CLCSS)

Q. Who provides the Credit Linked Capital Subsidy (CLCS) ?

The Credit Linked Capital Subsidy Scheme(CLCSS) is a scheme run by Central Government provided for Technological Upgradation on the Machinery purchased against Bank Term Loan.

Q. What is the quantum of Subsidy ?

The Credit Linked Capital Subsidy Scheme (CLCSS) provides a subsidy of 15% (25% Subsidy in case of units by SC/ST) on the cost of Machinery purchased by you with the help of Bank Loan.

Q. Does CLCSS Scheme applies to all businesses ?

The scheme is applicable to almost all manufacturing businesses and also few service sector units.

Q. What is the maximum amount of Subsidy that can be received under the Scheme ?

The maximum amount that can be claimed is Rs 15 Lakhs or 15% of Machine Cost whichever is lower.

Q. When we can file claim for Subsidy ?

The CLCSS Subsidy claim is to be filed after the complete disbursement of the Bank Term Loan.

Q. How is the claim processed ?

The CLCSS Subsidy claims are processed on First In First Out(FIFO) basis, which means the subsidy for the unit whose claim is received first, will be approved first.

Q. How many times can subsidy be claimed under Credit Linked Capital Subsidy Scheme(CLCSS) ?

The subsidy can be claimed till the maximum subsidy limit of Rs 15 Lakhs is not exhausted. For example, if during your previous term loan, you had claimed a subsidy of Rs 5 Lakhs, then you can claim the remaining Rs 10 Lakhs during your subsequent purchase of machinery.