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Special Credit Linked Capital Subsidy Scheme (SCLCSS) for Scheduled Caste/Scheduled Tribe

Special Credit Linked Capital Subsidy Scheme (SCLCSS) for Scheduled Caste / Scheduled scheme aims to facilitate capital subsidy to SC/ST MSEs for purchasing of plant & machinery/equipment through institutional finance (bank loan).

Authority

Central

Region

Central Government

Status

Verified 2026

Updated

March 2026

What you get

- 25% subsidy to SC/ST MSEs on institutional finance for procurement of Plant & Machinery/equipment (i.e. a subsidy cap of ₹ 25,00,000/-) without any sector-specific restrictions is provided.

Who can apply

Sole proprietorships, partnerships, co-operatives, private/public limited companies owned by SC/ST entrepreneurs in manufacturing or service sectors.; Must have valid Udyam Registration.; SC/ST units graduated from small to medium scale within 3 years of graduation.; New industries graduating to medium scale due to loan.

Required Paperwork

  • Aadhaar Card
  • PAN Card
  • Income Certificate
  • Residence Proof (Domicile)

Common Questions

What is Special Credit Linked Capital Subsidy Scheme (SCLCSS)?

Special Credit Linked Capital Subsidy Scheme (SCLCSS) is to facilitate capacity augmentation of existing SC/ST MSEs and for creation on new enterprises among SC/ST communities, 25 percent capital subsidy is provided for purchase of plant & machinery / equipment through institutional finance (bank loan).

Which department has launched this scheme?

This scheme has been launched by the Ministry Of Micro, Small & Medium Enterprises.

What are the provisions available under SCLCSS?

Under SCLCSS, 25% subsidy to SC/ST MSEs on institutional finance for procurement of Plant & Machinery / equipment without any sector specific restrictions is provided.

Which products/ sub-sectors have been approved under the SCLCSS component?

There is no such restriction. The scheme covers SC/ST MSEs of both manufacturing and service sectors. However, the industries covered under the RED category as per the Classification of industries for consent management (Schedule- VIII, rules 3(2) and 12 of Ministry of Environment & Forests, Govt. of India) shall not be eligible for subsidy under the above scheme.

Whether the Scheme is applicable for new MSEs?

Yes.

Is SCLCSS applicable for medium and large-scale Enterprises?

No, only Micro and Small-Scale Enterprises (existing & new) are eligible under SCLCSS.

Whether the subsidy can be availed for replacement of machinery and equipment?

The subsidy shall be admissible for investment in acquisition/replacement of plant & machinery/equipments & technology up-gradation of any kind through institutional finance. But fabricated /second-hand machinery /equipment will not be eligible for subsidy under the component of the scheme.

Whether this subsidy can be claimed in combination with any other scheme?

The units availing subsidy under the SCLCSS shall be eligible for all other types of subsidies except any other Central Government /State Government Subsidy for technology upgradation.

What is the tenure of term loan eligible for this subsidy?

To avail the subsidy benefit under the scheme, the sanctioned term loan should not be for less than three years including moratorium period for MSEs.

What is the mechanism for disbursement of subsidy to the unit?

Banks will follow the principle of First -In -First -Out (FIFO) while submitting the claims online under SCLCSS Scheme. The principle of First -In -First -Out (FIFO) will also be followed by the NSSH Cell for disbursement of subsidy to the eligible beneficiary unit.