Sarkari Yojana
Venture Capital Fund for Scheduled Castes
About Venture Capital Fund for Scheduled Castes
The Ministry of Social Justice and Empowerment launched the “Venture Capital Fund for Scheduled Castes” to promote entrepreneurship among the Scheduled Caste population by giving them concessional finance geared towards innovation and growth technologies. Financial assistance ranges from ₹10,00,000/- to ₹15,00,00,000/-, extended either as debt/convertible instruments at 4% per annum (3.75% per annum for Scheduled Caste women/disabled entrepreneurs), or as equity investment carrying a return of 8% per annum or the exit valuation, whichever is higher. Applications are accepted online.
Scheme Overview
Central Government
Ministry Of Social Justice and Empowerment
Business Entity
Scheme Details
Eligibility Requirements
To qualify for Venture Capital Fund for Scheduled Castes, applicants must satisfy the following conditions:
Projects/units set up in manufacturing, services and allied sectors — including start-ups and units incubated at technology business incubators — that create assets from the deployed funds will be considered. For Companies Applying for Assistance up to ₹50,00,000/- Eligible companies must have:
at least 51% shareholding held by Scheduled Castes…
at least 51% shareholding held by Scheduled Castes entrepreneurs, with management control, for the past 6 months; OR;
be a new company that succeeds a Proprietary…
be a new company that succeeds a Proprietary Firm, Partnership Firm, One Person Company (OPC), Limited Liability Partnership (LLP), or another entity incorporated under any law, with a sound business model in operation for over 6 months, where the predecessor entity held at least 51% shareholding of Scheduled Castes entrepreneurs with management control. For Companies Applying for Assistance above ₹50,00,000/- Eligible companies must have:
at least 51% shareholding held by Scheduled Castes…
at least 51% shareholding held by Scheduled Castes entrepreneurs, with management control, for the past 12 months; OR;
be a new company that succeeds a Proprietary…
be a new company that succeeds a Proprietary Firm, Partnership Firm, One Person Company (OPC), Limited Liability Partnership (LLP), or another entity incorporated under any law, with a sound business model in operation for over 12 months, where the predecessor entity held at least 51% shareholding of Scheduled Castes entrepreneurs with management control. For Technology Oriented Innovative Projects
Innovative ideas chosen by Technology Business Incubators (TBIs)…
Innovative ideas chosen by Technology Business Incubators (TBIs) can get incubation funding covering operation and maintenance costs, capped at an average of ₹10,00,000/- per year over three years, subject to satisfactory progress.
New companies with at least 51% shareholding held…
New companies with at least 51% shareholding held by first-time Scheduled Caste entrepreneurs working on technology-oriented innovative projects:
supported by incubation centres at IITs, NITs, premier…
supported by incubation centres at IITs, NITs, premier business schools, universities, institutions, medical colleges, or NSTEDB under the Department of Science & Technology (DST), or backed by a corporate, with good commercialization potential and the project at the implementation stage; and/or;
lacking incubation centre support but holding a patent/copyright…
lacking incubation centre support but holding a patent/copyright with good commercialization potential, with the project at the implementation stage.
Projects sanctioned by Government of India departments after…
Projects sanctioned by Government of India departments after due appraisal.
Entrepreneurs must submit documentary proof of SC status when submitting proposals.
Documentary proof/certificates from incubation centres/corporates, or documents relating to patents/copyrights in the SC entrepreneur's name, must also accompany the proposal.
A sanction letter from the Government of India department is required.
E-documents are also accepted.
For companies with sanctioned assistance above ₹5,00,00,000/-, funds released by the Trust/Fund Manager are proportional to the loan tranche released by the Bank/Government of India department, except for cases supported under the Innovative Ideas category selected by Technology Business Incubators (TBIs), as described at point A above.
Benefits Provided
Venture Capital Fund for Scheduled Castes provides the following benefits to eligible applicants:
Size of Financial Assistance
Financial assistance ranges from ₹10,00,000/- (minimum) to ₹15,00,00,000/-…
Financial assistance ranges from ₹10,00,000/- (minimum) to ₹15,00,00,000/- (maximum).
Total financial assistance cannot exceed twice the company's…
Total financial assistance cannot exceed twice the company's current net worth. Funding Tenure
Financial assistance runs for a maximum of 10…
Financial assistance runs for a maximum of 10 years, including the moratorium period, in the case of debentures.
For equity, the exit decision is made case-by-case,…
For equity, the exit decision is made case-by-case, with a maximum tenure of 10 years. Returns/Coupons/Interest Rate
Debt/convertible instruments carry an interest/coupon rate of 4%…
Debt/convertible instruments carry an interest/coupon rate of 4% per annum.
Scheduled Caste women entrepreneurs and disabled entrepreneurs accessing…
Scheduled Caste women entrepreneurs and disabled entrepreneurs accessing debt/convertible instruments get a rate of 3.75% per annum.
For equity investments, the return at exit —…
For equity investments, the return at exit — via buyback, strategic investment, or an IPO — is 8% per annum or the valuation, whichever is higher. Working Capital Gap Funding
The fund offers working capital gap funding, earmarking…
The fund offers working capital gap funding, earmarking up to 20% of the total financial assistance for this purpose over the next 10 years.
The Investment Committee approves the exact quantum, based…
The Investment Committee approves the exact quantum, based on the project's needs, case-by-case. Technology Business Incubator (TBI) Funding
Innovative ideas selected by Technology Business Incubators (TBIs)…
Innovative ideas selected by Technology Business Incubators (TBIs) may get funding to cover operation and maintenance costs.
This is capped at an average of ₹10,00,000/-…
This is capped at an average of ₹10,00,000/- per year over three years, subject to satisfactory progress. Moratorium Period for Principal Redemption
For debentures, the moratorium period for principal redemption…
For debentures, the moratorium period for principal redemption is decided case-by-case, but cannot exceed 36 months from the date of investment in the company. Cost Bearing for Documentation
The Venture Capital Fund for Scheduled Castes (VCF-SC)…
The Venture Capital Fund for Scheduled Castes (VCF-SC) bears the Valuer's and Lawyer's fees for the first valuation and title search of the property/properties. Disbursement
For assistance up to ₹5,00,00,000/-, investment covers up…
For assistance up to ₹5,00,00,000/-, investment covers up to 75% of the project cost, with the remaining 25% funded by the promoters or a Government subsidy scheme.
For assistance above ₹5,00,00,000/-, investment covers up to…
For assistance above ₹5,00,00,000/-, investment covers up to 50% of the project cost.
For assistance above ₹5,00,00,000/-, at least 25% of…
For assistance above ₹5,00,00,000/-, at least 25% of the project cost must come from promoters or a Government subsidy scheme, and the remaining 25% can come from promoters, a bank, or another financial institution.
For companies with sanctioned assistance above ₹5,00,00,000/-, funds…
For companies with sanctioned assistance above ₹5,00,00,000/-, funds released by the Trust/Fund Manager are proportional to the loan tranche/promoter's contribution released by a Bank/Government of India department, except for cases supported under the Innovative Ideas category selected by TBIs.
Investment is disbursed in tranches
Investment is disbursed in tranches.
Disbursement follows execution of the complete legal documentation
Disbursement follows execution of the complete legal documentation.
Disbursement depends on meeting the sanctioned terms, pre-disbursement…
Disbursement depends on meeting the sanctioned terms, pre-disbursement conditions, and successful completion of the Valuation and Title Search Report (TSR). Conditions
Interest/coupon payments begin from the date of investment…
Interest/coupon payments begin from the date of investment in the company.
The company pays interest to the Venture Capital…
The company pays interest to the Venture Capital Fund for Scheduled Castes (VCF-SC) quarterly.
Scheduled Castes entrepreneurs must maintain at least 51%…
Scheduled Castes entrepreneurs must maintain at least 51% shareholding for as long as the fund's assistance remains in the company.
Where working capital assistance goes to existing beneficiaries,…
Where working capital assistance goes to existing beneficiaries, the account must be standard.
Where working capital assistance goes to existing beneficiaries,…
Where working capital assistance goes to existing beneficiaries, the beneficiary company must have applied to a nationalized/private/cooperative bank for working capital assistance.
Where a Government subsidy is available, promoters must…
Where a Government subsidy is available, promoters must contribute at least 15% of the project cost.
Where the Company/Promoters request a change in the…
Where the Company/Promoters request a change in the property after the first valuation/title search, they bear the Valuer's and Lawyer's fees for that change.
Documents Required
Applicants should keep the following documents ready before starting the application:
Caste Certificate
Caste Certificate.
A Detailed Project Report (prepared and submitted by…
A Detailed Project Report (prepared and submitted by the company/its promoters).
Documentary proof/certificate from the incubation centres/corporates (for technology-oriented…
Documentary proof/certificate from the incubation centres/corporates (for technology-oriented innovative projects supported by incubation centres).
Documents relating to a patent/copyright in the SC…
Documents relating to a patent/copyright in the SC entrepreneur's name (for technology-oriented innovative projects without incubation centre support).
A Sanction Letter (for projects sanctioned by Government…
A Sanction Letter (for projects sanctioned by Government of India departments, or where a Government subsidy is available).
How to Apply
Online Application
Applicants can apply for Venture Capital Fund for Scheduled Castes through the online application process outlined below.
Registration Go to the official link for online application and click "Create an Account" to reach the registration page. Fill in all mandatory fields and register. If required, verify your Email ID and Mobile Number via OTP. If prompted to create a password, ensure it meets the required security standards. Application
Go to the official link for online application…
Go to the official link for online application and log in with the credentials created during registration. Navigate to the online form for the scheme you wish to apply for.
Fill in all mandatory fields on the form…
Fill in all mandatory fields on the form and upload all mandatory documents in the specified format and size. Review all the entered information and uploaded documents carefully, making any needed corrections.
Tick the checkbox to accept the terms and…
Tick the checkbox to accept the terms and conditions, declaration, and privacy policy (if any), then click "Submit" to send your application. You'll receive a confirmation message. The online application remains valid for 6 months. Post-Application Processes
Screening Committee Review (Preliminary Stage) Proposals go before…
Screening Committee Review (Preliminary Stage) Proposals go before the Screening Committee on a first-come, first-served basis for an initial review.
Detailed Appraisal and Due Diligence Officials or authorized…
Detailed Appraisal and Due Diligence Officials or authorized representatives of IFCI Venture Capital Funds Limited conduct a site visit of the project location.
Investment Committee Review (Final Stage) - The Asset…
Investment Committee Review (Final Stage)
The Asset Management Company (AMC) prepares a detailed proposal, which the Investment Committee considers for final sanction.
The Investment Committee decides the quantum of assistance and may defer, reject, or sanction the proposal on merit.
Issuance of Letter of Intent and Legal Documentation…
Issuance of Letter of Intent and Legal Documentation
Once the Investment Committee approves/sanctions the proposal, a Letter of Intent (LOI), term sheet, and legal checklist are issued to the company.
After the company accepts the LOI and term sheet, the AMC prepares and executes the necessary legal documentation.
Valuation and Title Search Initiation - Once the…
Valuation and Title Search Initiation
Once the LOI and term sheet are accepted, a Valuer and Lawyer are assigned to conduct the valuation and title search of the property/properties.
VCF-SC bears the fees for this first valuation and title search.
Disbursement of Funds
Disbursement follows the sanction's terms and conditions once the above process concludes.
Funds are disbursed to companies after complete legal documentation is executed, at the IFCI Venture Capital Funds Limited office in Delhi.
Disbursement happens in tranches and depends on meeting the sanctioned terms, pre-disbursement conditions, and the Valuation and Title Search Report (TSR).
Exclusions / Who Is Not Eligible
- Entrepreneurs belonging to Scheduled Tribes, Other Backward Classes, or the General category are not eligible under this fund.
- 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 are not eligible for direct financing.
Official Application & Website
Verify the latest eligibility, dates and instructions before applying.