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Venture Capital Fund for Scheduled Castes

Ministry: Ministry Of Social Justice and Empowerment

Department: Department of Social Justice & Empowerment

The scheme aims to promote entrepreneurship among Scheduled Caste individuals by providing concessional finance. Benefits include investment ranging from ₹10,00,000/- to ₹15,00,00,000/- as debt or equity for eligible Private Limited or Public Limited companies.

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Source: myScheme.gov.in ↗Last verified: 5 Oct 2026·YojnaGuru is not affiliated with or endorsed by any government body

About This Scheme

The scheme Venture Capital Fund for Scheduled Castes was launched by the Ministry of Social Justice and Empowerment, Ministry of Social Justice and Empowerment, Government of India. The scheme aims to promote entrepreneurship among the Scheduled Caste population by providing concessional finance to them, focusing on innovation and growth technologies. The scheme provides financial assistance ranging from ₹10,00,000/- to ₹15,00,00,000/-, which can be provided through debt/convertible instruments at 4% per annum (3.75% per annum for Scheduled Caste women/disabled entrepreneurs) or through equity investment with a return of 8% per annum or valuation, whichever is higher at exit. The applications for this scheme are accepted online.

Benefits

₹10.0 L · annual

Size of Financial Assistance
  • Financial assistance available ranges from ₹10,00,000/- (minimum) to ₹15,00,00,000/- (maximum).
  • Aggregate financial assistance must not exceed two times the current net worth of the Company.
Funding Tenure
  • The maximum tenure for financial assistance is up to 10 years, including the moratorium period in the case of debentures.
  • In the case of equity, the decision for exit would be taken on a case-to-case basis, with a maximum tenure up to 10 years.
Returns/Coupons/Interest Rate
  • For debt/convertible instruments, the interest/coupon rate is 4% per annum.
  • For Scheduled Caste women entrepreneurs and disabled entrepreneurs accessing debt/convertible instruments, the interest/coupon rate is 3.75% per annum.
  • In equity investment, the return at the time of exit by way of buyback, strategic investment, or Initial Public Offering (IPO) shall be 8% per annum or as per the valuation, whichever is higher.
Working Capital Gap Funding
  • The fund offers working capital gap funding, where a maximum of 20% of the total financial assistance should be earmarked for this purpose for the next 10 years.
  • The quantum of such assistance shall be approved by the Investment Committee as per the requirement of the project, on a case-to-case basis.
Technology Business Incubator (TBI) Funding
  • Innovative ideas selected by Technology Business Incubators (TBIs) may receive funding to cover the cost of operation and maintenance.
  • This funding is subject to a ceiling of ₹10,00,000/- on an average per year for a period of three years, subject to satisfactory progress.
Moratorium Period for Principal Redemption
  • In the case of debentures, the moratorium period for the redemption of the principal is on a case-to-case basis, but not more than 36 months from the date of investment in the Company.
Cost Bearing for Documentation
  • The fees for the Valuer and the Lawyer for conducting valuation and title search of the property(ies) shall be borne by the Venture Capital Fund for Scheduled Castes (VCF-SC) for the first time.
Disbursement
  • For financial assistance up to ₹5,00,00,000/-, investment shall be funded maximum up to 75% of the project cost, and the balance 25% must be funded by the promoters or through Government subsidy under various schemes.
  • For financial assistance above ₹5,00,00,000/-, investment shall be funded maximum up to 50% of the project cost.
  • For financial assistance above ₹5,00,00,000/-, at least 25% of the project cost shall be funded by promoters or through Government subsidy under various schemes, and the balance 25% can be funded either by promoters, a bank, or any other Financial Institution.
  • For companies with sanctioned assistance of above ₹5,00,00,000/-, the money released by the Trust/Fund Manager would be in proportion to the loan tranche/promoter’s contribution released by a Bank/department of Government of India, except in cases supported under the Innovative ideas category selected by Technology Business Incubators (TBIs).
  • The investment disbursement shall be made in tranches.
  • The disbursement shall be made post execution of the complete legal documents.
  • Disbursement is subject to the completion of the sanctioned terms, pre-disbursement conditions, and the successful completion of Valuation and Title Search Report (TSR).
Conditions
  • Interest/Coupon payment shall commence from the date of investment in the Company.
  • Interest payments will be made quarterly by the company to Venture Capital Fund for Scheduled Castes (VCF-SC).
  • The shareholding of Scheduled Castes entrepreneurs (at least 51%) has to be maintained till the assistance under this fund is present in the company.
  • If working capital assistance is extended to existing beneficiaries, the account must be standard.
  • If working capital assistance is extended to existing beneficiaries, the beneficiary company should have applied to nationalized/private/cooperative Banks for working capital assistance.
  • In cases where Government subsidy is available, the promoters will have to contribute at least 15% of the project cost.
  • If any modification is requested by the Company/Promoters for change in the property after the first valuation/title search, the fees for the Valuer and Lawyer shall be borne by the Company/Promoters.

Eligibility

Note: You may be eligible based on the information shown. Please verify the official eligibility requirements before applying.
  • •

    The projects/units being set up in manufacturing, services and allied sector, including start-ups and units being incubated in the technology business incubators, ensuring asset creation out of the funds deployed in the unit shall be considered.

  • •

    ##### For Companies Applying for Assistance up to ₹50,00,000/-

  • •

    Companies having:

  • •

    a. at least 51% shareholding by Scheduled Castes entrepreneurs for the past 6 months with management control OR;

  • •

    b. a new Company provided that the new Company is a successor entity of a Proprietary Firm or Partnership Firm or One Person Company (OPC) or Limited Liability Partnership (LLP) or any other establishment incorporated under any law in force with sound business model which has been in operation for over 6 months, and the predecessor entity had at least 51% shareholding of the Scheduled Castes entrepreneurs with management control.

  • •

    ##### For Companies Applying for Assistance above ₹50,00,000/-

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    Companies having:

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    a. at least 51% shareholding by Scheduled Castes entrepreneurs for the past 12 months with management control OR;

  • •

    b. a new Company provided that the new Company is a successor entity of a Proprietary Firm or Partnership Firm or One Person Company (OPC) or Limited Liability Partnership (LLP) or any other establishment incorporated under any law in force with sound business model which has been in operation for over 12 months, and the predecessor entity had at least 51% shareholding of the Scheduled Castes entrepreneurs with management control.

  • •

    ##### For Technology Oriented Innovative Projects

  • •

    A. Innovative ideas selected by Technology Business Incubators (TBIs) for incubation funding to cover the cost of operation and maintenance subject to a ceiling of ₹10,00,000/- on an average per year for a period of three years subject to satisfactory progress.

  • •

    B. New Companies having at least 51% shareholding by first time Scheduled Caste entrepreneurs who have been working in technology oriented innovative projects:

  • •

    i. with the support of incubation centers at IITs, NITs, Premier Business Schools, Universities, Institutions, Medical Colleges, NSTEDB under Department of Science & Technology (DST) or supported by corporate, with good potential of commercialization and project is at implementation stage; and/or;

  • •

    ii. without the support of Incubations centers but are having patent/copyrights with good potential of commercialization and project is at implementation stage.

  • •

    iii. Projects sanctioned by departments of Government of India after due appraisal.

  • •

    Documentary proofs of being SC will have to be submitted by the Entrepreneur at the time of submitting the proposals.

  • •

    Documentary proofs / certificate from the incubation centers/corporates or documents w.r.t patent/ copyrights in the name of SC entrepreneur need to be submitted at the time of submitting the proposal.

  • •

    Sanction letter of department of Government of India.

  • •

    E-documents will also be accepted.

  • •

    For Companies with sanctioned assistance of above ₹5,00,00,000/-, the money released by the Trust/Fund Manager would be in proportion to the loan tranche released by Bank/department of Govt of India, except in the cases being supported under Innovative ideas category selected by Technology Business Incubators (TBIs) as mentioned at point A above.

Required Documents

  • ✦
    Caste Certificate.
  • ✦
    Detailed Project Report (To Be Prepared And Submitted By The Company/Its Promoters).
  • ✦
    Documentary Proofs / Certificate From the Incubation Centers/corporates (For Technology Oriented Innovative Projects With Support Of Incubation Centers).
  • ✦
    Documents Regarding Patent/copyrights in the Name of the SC Entrepreneur (For Technology Oriented Innovative Projects Without Support Of Incubation Centers).
  • ✦
    Sanction Letter (For Projects Sanctioned By Departments Of Government Of India Or In Cases Where Government Subsidy Is Available).

✦ Required ◦ Optional

How to Apply

OOnline
Registration

Navigate to the official link for online application. Click on "Create an Account". You will be taken to the registration page. Fill in all the mandatory fields and register.

*If required, verify your Email ID and Mobile Number via OTP.

*If you are prompted to create a password, ensure the password meets security requirements.

Application

Step 1: Navigate to the official link for online application. Use the credentials you created during registration to log in. Navigate to the online form of the scheme you intend to apply for.

Step 2: In the form, fill in all the mandatory fields and upload all the mandatory documents in the specified format and size. Carefully review all the information provided and the documents uploaded. Make any necessary corrections.

Step 3: Acknowledge and agree to the terms and conditions, declaration, and privacy policy (if any) by ticking the designated checkbox. Click "Submit" to submit your application. You'll receive a confirmation message.

*The online application shall remain valid for a period of 6 months.

Post-Application Processes

Step 1: Screening Committee Review (Preliminary Stage)

The proposals shall be put up before the Screening Committee on a first-come, first-served basis for an initial analysis.

Step 2: Detailed Appraisal and Due Diligence

A site visit of the project site shall be carried out by officials or authorized representatives of IFCI Venture Capital Funds Limited.

Step 3: Investment Committee Review (Final Stage)

  • The detailed proposal prepared by the Asset Management Company (AMC) shall be considered by the Investment Committee for final sanction.
  • The Investment Committee determines the quantum of assistance and may defer, reject, or sanction the proposal based on its merit.

Step 4: Issuance of Letter of Intent and Legal Documentation

  • Following approval/sanction from the Investment Committee, a Letter of Intent (LOI) and term sheet, along with a legal checklist, shall be issued to the Company.
  • After the Company accepts the LOI and term sheet, the necessary legal documentations shall be prepared and executed by the Asset Management Company (AMC).

Step 5: Valuation and Title Search Initiation

  • Post acceptance of the Letter of Intent (LOI) and term sheet, the assignment for a Valuer and Lawyer shall be initiated for conducting valuation and title search of the property(ies).
  • The fees for this first valuation and title search are borne by the Venture Capital Fund for Scheduled Castes (VCF-SC).
Disbursement of Funds
  • Disbursement shall be made as per the terms and conditions of the sanction, once the above process is complete.
  • The disbursement shall be made to the companies post execution of the complete legal documents at the office of IFCI Venture Capital Funds Limited situated in Delhi.
  • The disbursement is made in tranches and is subject to the successful completion of the sanctioned terms, pre-disbursement conditions, Valuation, and Title Search Report (TSR).

Quick Info

Level
Central Government
Max benefit
₹10.0 L

Categories

Business & Entrepreneurship

Data Sources