State IncentiveMinistry of Micro, Small & Medium Enterprises (MoMSME)Verified 19 May 2026

Credit Linked Capital Subsidy Scheme for Technology Upgradation

The Credit Linked Capital Subsidy Scheme for Technology Upgradation provides a 15% subsidy to MSEs on loans up to ₹1 Crore for modernizing plant and machinery. Special categories like SC/ST or women entrepreneurs may receive up to 25% subsidy. The scheme aims to assist businesses in adopting advanced technology.

Maximum amount
₹15.0L
Typical payout
₹5.0L
Processing time
12–24 weeks
Application window
Open year-round

Check if your startup qualifies for Credit Linked Capital Subsidy Scheme for Technology Upgradation

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Eligibility criteria

Company type
Private Limited, LLP, Proprietorship, Partnership Firm
Stage
Early Stage (Revenue < ₹1Cr), Growth Stage (₹1Cr–₹25Cr)
States
Delhi
Sectors
manufacturing, engineering, food_processing, textile, chemicals, printing, electronics
Prerequisites
  • Udyam (MSME) registration required

Documents required

1
Udyam Registration Certificate
Valid Udyam Registration Certificate required for identity and registration proof of the enterprise.
Tip: Ensure your Udyam Registration is up to date and matches the current business details.
2
GST Registration Certificate
Valid GST Registration Certificate needed for the business tax registration.
Tip: Verify the GST details align with the business's primary nature of operations.
3
Business PAN Card
PAN Card of the business is needed for tax and financial identification.
Tip: Double-check the name and PAN number match the legal business documentation.
4
Aadhaar Card of Promoters/Directors
Aadhaar card of all promoters/directors required for identity verification.
Tip: Ensure all promoters/directors have linked their Aadhaar with their PAN.
5
Bank Term Loan Sanction Letter
Letter confirming the sanction of the term loan from the lending institution.
Tip: Keep a copy of the loan sanction terms for easy reference during the application process.
6
Detailed Project Report (DPR)
DPR explaining the nature of the technology upgrade and its benefits.
Tip: Include detailed financial analysis and projections to support the project's feasibility.
7
Proforma Invoices and Official Quotes
Invoices and quotes for machinery featuring appropriate HSN/SAC codes.
Tip: Ensure invoices cover all machinery specifications required by the scheme.
8
Technical Specifications Sheet
Specifications sheet matching approved technical criteria in the sub-sectors.
Tip: Refer to MoMSME's official website to ensure alignment with approved standards.
9
Caste Certificate or Women Entrepreneurship Proof
Proof required for claiming higher subsidies under special categories.
Tip: Provide authenticated documents for SC/ST category or women entrepreneurship status.
10
Partnership Deed or MoA/AoA
Legal framework documents required for confirming company formation details.
Tip: Ensure these documents clearly reflect the current structure and ownership.
11
Audited Financial Statements and ITR
Financial records for the past 2–3 years required for loan appraisal.
Tip: Maintain up-to-date audited statements and tax returns to facilitate smoother approvals.
12
Machinery Installation Certificate
Certificate from a chartered engineer confirming machinery installation.
Tip: Hire a certified professional to verify and document the proper installation of machinery.

How to apply for Credit Linked Capital Subsidy Scheme for Technology Upgradation

1
Cross-reference your intended machinery purchase against the approved technical criteria.Open portal
2
Approach an authorized Primary Lending Institution to apply for a loan.Open portal
3
Inform your lender during loan processing to initiate your subsidy request.Open portal
4
Track your subsidy application status using your reference ID.Open portal

Frequently asked questions

Who is eligible for Credit Linked Capital Subsidy Scheme for Technology Upgradation?

Credit Linked Capital Subsidy Scheme for Technology Upgradation is available to Private Limited, LLP, Proprietorship, Partnership Firm companies at the Early Stage (Revenue < ₹1Cr), Growth Stage (₹1Cr–₹25Cr) stage, across Delhi. Udyam (MSME) registration is required.

How much funding does Credit Linked Capital Subsidy Scheme for Technology Upgradation provide?

Credit Linked Capital Subsidy Scheme for Technology Upgradation provides up to ₹15.0L. Most applicants receive around ₹5.0L.

How long does Credit Linked Capital Subsidy Scheme for Technology Upgradation approval take?

The typical processing time from submission to disbursement is 12–24 weeks.

Is Credit Linked Capital Subsidy Scheme for Technology Upgradation currently accepting applications?

Yes, Credit Linked Capital Subsidy Scheme for Technology Upgradation is currently active and accepting applications. Application window: Open year-round.

Do I need Udyam registration for Credit Linked Capital Subsidy Scheme for Technology Upgradation?

Yes, Udyam (MSME) registration is required. Register at udyamregistration.gov.in before applying.

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Information is based on publicly available scheme guidelines. Last verified 19 May 2026. Always verify with official sources before applying.