Clarifications on issues raised by Nodal Banks/PLIs under SCLCSS:
(i) Treatment of SCLCSS subsidy in case of takeover of loan account
Query: A unit has taken loan from PLI/Nodal bank and claimed subsidy under SCLCSS. Will the unit be eligible for transfer of loan from one bank to another before the expiry of lock-in period i.e., 3 years?
Clarification: In case of takeover of loan account, PLI/Nodal bank may be allowed as long as the account is transferred to another nodal bank or PLI under SCLCSS.
However, if the applicant intends to foreclose the loan account by making payment of the loan amount before the sanctioned period or 3 years from reference date (duration of TDR) whichever is earlier, refund of the SCLCSS subsidy shall be taken back by Ministry.
(ii) Claim by both Husband and Wife under SCLCSS Scheme
Query: Can two claims from two different entities of same family i.e. husband and wife be considered for subsidy under SCLCSS, even if both units have separate Registration IDs? The proprietors of both the unit are Husband and Wife.
Clarification: Only one person in the family would be allowed to avail benefit under SCLCSS. The family includes self and spouse. This in line with the provision laid down under Prime Minister Employment Generation Programme (PMEGP) under Ministry of MSME.
(iii) General Agreement under SCLCSS:
Query: In case of Tie-ups between Nodal Banks and PLIs which General Agreement is to be used?
Clarification: The General Agreement as applicable under CLCS-TUS scheme can be used in the SCLCSS also.
(iv) Inclusion of Cooperative Banks as co-opted PLls under SCLCSS
Query: Whether Cooperative Banks can be included as co-opted PLIs under SCLCSS
Clarification: Non-Scheduled Urban Cooperative Banks cannot be co-opted under SCLCSS.