Reviewed by the CreditCares advisory desk · 13 years in business finance · Last updated 10 July 2026
CLCSS — a 15% subsidy on technology upgradation.
The Credit Linked Capital Subsidy Scheme reimburses 15% of institutional finance used by MSMEs to upgrade plant & machinery to approved, well-established technologies.
Modernise the shop floor, recover 15%
MSMEs that finance new machinery through a bank term loan can claim a 15% capital subsidy — capped at ₹15 lakh — provided the technology is on the approved list for their product sector.
The subsidy is routed through the lending institution to your loan account, effectively prepaying part of the principal. Second-hand machinery and replacement of the same technology do not qualify.
Who is eligible?
- Micro & small enterprises with Udyam registration
- Sole proprietorships, partnerships, co-ops, private & public companies
- Technology upgradation in an approved product / sub-sector
- Machinery financed via term loan from an eligible lender
- New machinery only — no second-hand equipment
Documents you'll need
- Udyam registration & entity KYC
- Term loan sanction letter
- Quotations / invoices for the machinery
- Chartered engineer certificate on technology where required
- Financials & bank statements
Upgrading machinery this year? We map your profile to the right lenders, prepare a bank-ready file and coordinate until disbursal — at no upfront cost.
Check your eligibility