Have you been planning a capacity expansion or thinking of replacing your existing machines with newer, automated machines. We recommend that you fund the capital expenditure through Credit Linked Capital Subsidy Scheme (CLCSS), a cost effective method of funding your investment.
The key features of the scheme are as follows:
1. Upto 15% subsidy for investment made in eligible plant & machinery
2. Ceiling on loan – INR 100 lakh
3. Ceiling on subsidy – INR 15 lakh
Eligibility for a unit:
1. Registration with Directorate of Industries (DIC)
2. All types of companies including sole proprietorships, partnerships, private limited companies are eligible
3. While both old and new units are eligible, mostly given to old units for capacity expansion/change in technology
4. Key machines which are financed across all industries include modification of furnace, installing heat recovery system, replacing manual machines with automated machines, improved packing machines, energy conservation machinery, installing testing machines.
5. Subsidy is available only to entrepreneurs who take a bank loan to finance the project from designated banks. Designated banks include the State Bank of India, Canara Bank, Bank of Baroda, Punjab National Bank, Andhra Bank, Bank of India, State bank of Bikaner and Jaipur, Tamilnadu Industrial Investment Corporation, The National Small Industries Corporation
6. The subsidy is available only after a bank has sanctioned the loan. Bankers will assess project attractiveness, collateral availability etc. However since bankers do not generally ask for collateral for loans under INR 10 lakhs , a machine worth INR 11-12 lakhs (including subsidy) can be funded without collateral.
1. Project report
2. SSI certification
3. Audited financial statements of the company for past three years
4. Lease/ownership document of the factory shed/registered office
5. Machinery quotes from three suppliers
6. KYC documents
FineTrain can assist you in availing a business loan under CLCSS, please write to us or apply for a business loan through our website www.finetrain.com.
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