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CLCS-TUS is designed to help MSMEs modernise their plant and machinery. When a bank finances the purchase of new, eligible technology, the government provides a 15% upfront capital subsidy, reducing the effective cost to the borrower.
Key features
- 15% capital subsidy on institutional finance
- Maximum subsidy: ₹15 lakh
- Applicable to MSMEs upgrading to eligible technologies in specified sub-sectors
- Disbursed through scheduled commercial banks and other lending institutions
Eligibility
- Must be a registered MSME
- Technology and sub-sector must be on the approved CLCS-TUS list
- Loan must be from an eligible lending institution
Benefits
- Direct capital cost reduction
- Technology-led productivity gains
- Easier repayment cashflow
Required documents
- ✓Udyam, GST, project report, quotations, bank sanction letter
Application process
- 1Confirm eligibilityCheck your sub-sector and technology on the CLCS-TUS approved list.
- 2Apply for loanApply for the term loan clearly citing CLCS-TUS.
- 3Subsidy claimBank files subsidy claim on the MSME portal.
- 4DisbursementSubsidy credited directly to the borrower's loan account.
FAQs
No. It's restricted to specific sub-sectors and eligible technologies notified under the scheme.
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