SCLCSS
The Special Credit Linked Capital Subsidy Scheme (SCLCSS) is a government scheme started by the Ministry of MSME (Micro, Small & Medium Enterprises), Government of India. This scheme helps people from Scheduled Caste (SC) and Scheduled Tribe (ST) communities to start or grow their small businesses by giving them a subsidy (financial help) when they buy new machines or equipment.
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Sponsoring Agency/Department: Ministry of MSME (Micro, Small & Medium Enterprises), Government of India.
Eligible Activities
- ☉ The business must be owned by SC or ST entrepreneurs (individual, partnership, company, etc.).
- ☉ You must have Udyam Registration.
- ☉ Both new and existing small businesses can apply.
- ☉ If your small business has recently become a medium-sized business (within 3 years), you can still apply.
- ☉ Only new machines or equipment are allowed. Second-hand or old machines are not covered.
Benefits
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☉ Big Subsidy: You can get 25% money back (maximum ₹25 lakh) on the loan you take from the bank to buy new machines or equipment for your business.
- ☉ Who Can Apply: Any small business in the manufacturing or service sector owned by SC/ST people can apply. The business must be registered on the Udyam portal.
- ☉ All Sectors Covered: Both manufacturing and service businesses are allowed, except those in the “RED category” (highly polluting industries).
How to Apply?
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☉ First, if you are an eligible SC/ST micro or small business (MSE) and you have taken a term loan from a bank to buy new machines or equipment, you can apply for the SCLCSS subsidy.
- ☉ Collect all required documents, such as your Udyam Registration, PAN card, caste certificate, shareholding details (if in partnership or company), GST registration, and a cancelled cheque of your business account.
- ☉ Submit your filled application form along with these documents to your bank (this is called the Prime Lending Institution or PLI), from where you took the loan.
- ☉ Your bank will check your application and, if your loan is approved, the bank will upload your subsidy claim on the government’s special online portal.
- ☉ Only loans approved by the bank’s branch will be considered for the subsidy.
- ☉ For loans from other eligible banks, SIDBI and NABARD are the main agencies that will handle the release of your subsidy.
- ☉ After uploading, your application goes through a review process.
- ☉ If everything is correct, the subsidy amount will be released and adjusted with your loan.
- ☉ You can always check the status of your application with your bank or the nodal agency.
Important Documents
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☉ Self-certified copy of Udyam Aadhaar Memorandum (UAM) & GST registration.
- ☉ Self-certified copy of PAN card (for proprietorship, the proprietor's PAN card).
- ☉ Self-certified copy of Caste certificate (for all partners/directors).
- ☉ Shareholding details (for partnership/Pvt. Ltd./LLP firms; SC/ST shareholding must be >51%).
- ☉ Attested copy of Partnership Deed or Memorandum and Articles of Association, as applicable.
- ☉ Payment receipt and system-generated GST invoice for testing services, if availed.
- ☉ NABL/BIS attested copy of final testing report, if applicable.
- ☉ Proof of reimbursement from NSSHO/NSIC, if any, in the same financial year.
- ☉ Cancelled cheque of the enterprise’s current account from which charges have been debited.
Things to Remember
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☉ You cannot take two subsidies from the government for the same machine or equipment
- ☉ The loan should be for at least 3 years (including any grace period).
- ☉ Only new machines and equipment are allowed.
- ☉ The business must keep running for at least 3 years after getting the subsidy.
Avail Subsidy Summary Report On Your Project
Got any questions?
We provide consultancy for various government subsidies, including those for agriculture, manufacturing, MSMEs, exports, technology upgrades, and infrastructure development.
We offer end-to-end support, from assessing eligibility to preparing and submitting subsidy applications, ensuring maximum benefits with minimal hassle.
The timeline varies based on the type of subsidy and government processing times. However, we streamline the process to ensure faster approvals.
Yes, we have successfully assisted over 750 clients across India and continue to expand our reach to help more businesses benefit from subsidies.
The required documents depend on the specific scheme but generally include business registration certificates, financial statements, project reports, and compliance documents. We guide you through the entire documentation process.
