Financial Policies

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Financial Policies

Credit Linked Capital Subsidy Scheme (CLCSS)

The Ministry of Small Scale Industries (SSI) is operating a scheme for technology up gradation of Small Scale Industries (SSI) called the Credit Linked Capital Subsidy Scheme (CLCSS). The Scheme aims at facilitating technology upgradation by providing upfront capital subsidy to SSI units, including tiny, khadi, village and coir industrial units, on institutional finance (credit) availed of by them for modernisation of their production equipment (plant and machinery) and techniques. The Scheme provided for 15% capital subsidy to SSI units, including tiny units, on institutional finance availed by them for induction of well-established and improved technology in selected sub-sectors/products approved under the Scheme. The eligible amount of subsidy was based on the actual loan amount not exceeding Rs40 to 100 lakh.

The eligible beneficiaries include sole proprietorships, partnerships, co-operative societies, private and public limited companies in the SSI sector. Priority shall be given to women entrepreneurs.

Units covered under this scheme include existing SSI units registered with the State Directorate of Industries, which upgrade their existing plant and machinery with the state of the art technology, with or without expansion and new SSI units which are registered with the State Directorate of Industries and which have set up their facilities with only the appropriate, eligible and proven technology duly approved by the GTAB/TSC.

Credit Guarantee Fund Scheme for Micro & Small Enterprises (CGMSE)

New or existing micro and small enterprises availing credit facilities up to Rs100 lakh without any collateral security and or third party guarantee are eligible for CGMSE.

The guarantee cover available under the scheme is to the extent of 75 - 80% of the sanctioned amount of the credit facility, with a maximum guarantee cap of Rs62.50 - 65 lakh. The extent of guarantee cover is 85% for micro enterprises for credit up to Rs5 lakh. The extent of guarantee cover is 80% for - (i) Micro and Small Enterprises operated and/or owned by women; and (ii) all credits/loans in the North East Region.

In case of default, Trust settles the claim up to 75% (or 80%) of the amount in default of the credit facility extended by the lending institution. Lock in period of 18 months from either the date of last disbursement or date of payment of guarantee fee whichever is later, for invoking the claim under the scheme.