§1Who it is for

  • SC/ST-owned MSEs in manufacturing or services with Udyam

Useful if

SC/ST MSEs buying plant and machinery with a bank loan

Do not spend time on it if

Units already subsidised for the same machinery

§2Eligibility

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

Not eligible

  1. Units availing subsidy under SCLCSS shall not be allowed to avail any other subsidy for procurement of the same plant & machinery and equipment from any other scheme of Central / State Government and vice-versa.
  2. Fabricated or second-hand machinery.

§3Benefits

  • 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.

§4Norms — pattern of assistance

  1. 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.

§5Documents

Tick each one as you get it ready.

Self-certified copy of UAM & GST

§6How to apply

  1. 1

    [Offline] The eligible SC/ST MSEs need to submit the application along with the required documents to their Prime Lending Institution (PLI). This is the bank from which they have availed the term loan for procuring plant and machinery/equipment.

  2. 2

    The Nodal banks/agencies notified by the Ministry of MSME will then upload the claim application of the SC/ST MSEs on a dedicated MIS Portal.

  3. 3

    The nodal banks/agencies will only consider proposals for credit that has been approved by their respective branches. For other eligible Primary Lending Institutions (PLIs), SIDBI and NABARD will be the nodal agencies for releasing the subsidy under SCLCSS.

§7Pros and cons

Merits

  • 25% subsidy on P&M loan, up to ₹25 lakh
  • No sector restriction

Demerits

  • Needs institutional finance
  • No other subsidy allowed on the same machinery

→Related schemes

Need help with SCLCSS?

Eligibility check, DPR and application file — ask us on WhatsApp.

Our interestHelp is our paid service. You can also apply for the scheme yourself.

Sources

  1. myScheme — Special Credit Linked Capital Subsidy Scheme (SCLCSS) for Scheduled Caste/Scheduled Tribe
  2. Guidelines
  3. Guidelines-iI
  4. Circular
  5. Timeline For Applications
  6. Application Form

Checked on 18 October 2026. For information only — confirm with the department or bank. Spotted a mistake? Report it.