Special Credit Linked Capital Subsidy Scheme (SCLCSS) for Scheduled Caste and Scheduled Tribe supports SC/ST entrepreneurs by providing a 25% capital subsidy on bank loans taken for buying plant, machinery, or equipment. This central government scheme, managed by the Ministry of Micro, Small and Medium Enterprises, helps new and existing micro and small enterprises scale up their operations well. As of 2026, the scheme continues to run through the official portal sclcss.msme.gov.in and offers a subsidy ceiling of ₹ 25,00,000.
Special Credit Linked Capital Subsidy Scheme (SCLCSS) for Scheduled Caste and Scheduled Tribe - Introduction
Special Credit Linked Capital Subsidy Scheme (SCLCSS) for Scheduled Caste and Scheduled Tribe acts as a main support for SC/ST entrepreneurs looking to grow their businesses. Launched by the Ministry of Micro, Small and Medium Enterprises, this scheme works under the National Scheduled Caste and Scheduled Tribe Hub (NSSH) scheme. It promotes entrepreneurship by offering a 25% capital subsidy on the purchase of plant and machinery or equipment, provided the purchase uses institutional bank finance.
This scheme helps small business owners upgrade their technology and expand their production capacity. Whether someone is starting a fresh project or looking to upgrade an existing setup, this scheme reduces the debt burden and lets the owner invest more in commercial growth. The subsidy is released against new plant and machinery or equipment bought through a term loan from a Prime Lending Institution.
Key Information
| Scheme Name | Special Credit Linked Capital Subsidy Scheme (SCLCSS) for Scheduled Caste and Scheduled Tribe |
|---|---|
| Level | Central |
| Launched Under | National SC-ST Hub (NSSH) |
| Nodal Ministry | Ministry of Micro, Small and Medium Enterprises |
| Target Beneficiaries | SC/ST owned micro and small enterprises |
| Subsidy | 25% of the cost of plant and machinery or equipment |
| Maximum Subsidy | ₹ 25,00,000 |
| Application Mode | Through the Prime Lending Institution (bank) |
| Official Website | sclcss.msme.gov.in |
Benefits
Eligible units can get a 25% subsidy on institutional finance used to purchase plant, machinery, or equipment. The maximum subsidy cap is ₹ 25,00,000. There are no sector-specific restrictions, so the benefit applies regardless of the industry type, as long as the standard eligibility criteria are met. The subsidy helps reduce the cost of modern technology and makes it easier for SC/ST entrepreneurs to take part in public procurement.
Eligibility
Only SC/ST owned micro and small enterprises in the manufacturing or service sector can apply. The business must hold a valid Udyam Registration, and the owner or partners or directors must belong to the Scheduled Caste or Scheduled Tribe community. Units that grow from a small to a medium scale within three years remain eligible, and new businesses that grow into a medium scale because of this loan support are also encouraged to apply.
Eligible business types include:
- Sole proprietorships owned by an SC/ST entrepreneur.
- Partnerships, co-operatives and societies where SC/ST partners hold more than 51% shareholding.
- Private and public limited companies where SC/ST directors hold more than 51% shareholding.
Exclusions
Some purchases are not covered under this scheme. A unit cannot claim the subsidy if it has already received another Central or State Government subsidy for the same purchase of plant and machinery. Fabricated or second-hand machinery is not supported, and the term loan must have a minimum tenure of three years including any moratorium period.
Application Process
The application is made through the bank that gives the term loan, and the subsidy is released by the nodal agencies. Follow these steps to apply:
STEP 1 - Submit the application along with the required documents to the Prime Lending Institution (PLI), which is the bank where the term loan for the machinery or equipment has been taken.
STEP 2 - The nodal banks and agencies appointed by the Ministry of MSME upload the claim on the dedicated MIS Portal of the scheme.
STEP 3 - The bank processes the request. For qualified PLIs, SIDBI and NABARD act as the nodal agencies and release the subsidy directly to the eligible unit.
Documents
Keep the following documents ready while applying:
- Self-certified copy of Udyam Registration and GST details.
- Self-certified copy of the PAN card. For proprietorship, use the PAN of the SC/ST owner.
- Self-certified copy of the Caste Certificate of the owner or all partners or directors.
- Proof of shareholding showing that SC/ST entrepreneurs hold more than 51% shareholding, along with the Partnership Deed or Memorandum and Articles of Association.
- Payment receipts and system-generated GST invoices for the purchase.
- A cancelled cheque from the current account of the enterprise.
References
Track SCLCSS Application Status
FAQ's
What is Special Credit Linked Capital Subsidy Scheme (SCLCSS)?
Special Credit Linked Capital Subsidy Scheme (SCLCSS) helps create new enterprises and supports existing SC/ST micro and small enterprises by providing a 25% subsidy on equipment and machinery purchased through bank loans.
Which department launched this scheme?
Ministry of Micro, Small and Medium Enterprises launched this scheme under the National SC-ST Hub.
What specific benefits are available?
Eligible units can receive a 25% subsidy on institutional loans used to procure machinery or equipment, up to a limit of ₹ 25,00,000.
Are there specific sectors approved for this scheme?
There are no sector restrictions. However, industries categorized under the RED list regarding environmental rules are not eligible for this subsidy.
Can new businesses apply for this?
Yes, new micro and small enterprises owned by SC/ST entrepreneurs are encouraged to apply.
Is it open for medium and large-scale enterprises?
No, this scheme is strictly for micro and small-scale enterprises.
Does this cover the replacement of old machinery?
Yes, the subsidy can be used for technology upgrades or replacing old equipment, provided the machinery is new and not second-hand or fabricated.
Can I combine this with other schemes?
This can be used with other subsidies, provided those other schemes do not cover the same technology upgrade costs.
What is the minimum tenure for the eligible term loan?
The sanctioned term loan should have a tenure of at least three years, including any agreed-upon moratorium period.
How is the subsidy disbursed?
Banks use the First-In-First-Out (FIFO) principle to submit claims, and the NSSH Cell uses the same approach to pay the subsidy to the eligible unit.