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Technological changes are the only constant in today’s business world. The technological advancements play a huge role in giving that edge to the business entities. However, in our country, the majority of small businesses struggle with the technological needs of business organizations and still rely on old or outdated technologies. This is due to the high cost involved in technological up gradation and the limited or scarce source of finance and lenders to small businesses.
This is where the Government assistance plays a huge role or provides that much needed helping hand to such small businesses. The Government of India has come out with a number of schemes over the years to counter the challenges faced by the MSME sector. It provides easy and hassle-free financing options to the MSME sector for capital investments like technological up-gradation as well as working capital needs. The Credit Linked Capital Subsidy Scheme is one such scheme, where the Government provides financial assistance to the small businesses in the form of subsidies for the capital investment in the necessary or upgraded plant and machinery or heavy equipment, especially in rural and semi-urban areas.
The details of this scheme are discussed below.
About Credit Linked Capital Subsidy Scheme
The eligibility requirements for the borrowers to be eligible for a subsidy on loans under this scheme are mentioned below.
The eligible business entities can be any of the following business units,
The documentation process has been kept very basic and simplistic to provide faster and easier financial assistance to the eligible MSME business organizations. The list of documents required is,
The key highlights of this subsidy scheme that make it a very useful tool for the small businesses are mentioned below.
The scheme has in place an Online Application and Tracking System since the 1st October 2013. The applicants have to apply for a subsidy under the scheme directly with the Primary Lending Institutions (PLIs) where the MSME will procure the term loan.
The application will then be routed to Nodal Agency upon uploading it by the PLI. The Nodal Agency will further recommend the disbursal of the subsidy to the Office of DC (MSME).
The application will require further processing and approval of the Competent Authority with consensus of the Internal Finance Wing.
Upon sanction of all the above approvals, the subsidy will be granted to the PLI that will grant the term loan to the beneficiary.
1. What is CLCSS?
CLCSS (Credit Linked Capital Subsidy Scheme) is the subsidy that can be received by the MSME units for technological upgradation.
2. What is the period of commercial production needed to avail the subsidy under CLCSS?
The scheme requires a period of 3 years of commercial production for the MSME unit to avail the subsidy.
3. Where can the MSME apply for the subsidy under this scheme?
The applicant is required to apply directly with the PLI sanctioning the term loan for subsidy under this scheme.
4. When was CLCSS launched?
CLCSS was launched in the year 2000-2001.
5. Does the scheme cover Khadi and Village Industries?
Yes, the scheme covers the MSMEs of the Khadi and Village Industries as well as Coir Sector.
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Atal Innovation Mission
Bank Credit Facilitation Scheme
Coir Udyami Yojana
Khadi And Village Industries Commission
Mahila Samriddhi Yojana
National Skill Development Corporation
National Small Industries Corporation
Pradhan Mantri Kaushal Vikas Yojana
Pradhan Mantri Mudra Yojana
Pradhan Mantri Rojgar Yojana
Prime Minister Employment Generation Programme
Small Industries Development Bank Of India
Stand Up India Scheme
Unemployed Youth Employment Generation Programme
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