Venture Capital Fund for Scheduled Castes
Debt/equity ₹10 lakh–₹15 crore · SC entrepreneurs · Private/Public Limited companies
Scheduled Caste entrepreneurs can access debt or equity funding of ₹10 lakh to ₹15 crore at a concessional interest rate of just 4% per year to set up or expand a company in manufacturing, services, or tech. SC women and disabled entrepreneurs get an even lower rate of 3.75%. Apply online at foa.vcfsc.in.
About This Scheme
Scheduled Caste entrepreneurs can access debt or equity funding of ₹10 lakh to ₹15 crore at a concessional interest rate of just 4% per year to set up or expand a company in manufacturing, services, or tech. SC women and disabled entrepreneurs get an even lower rate of 3.75%. Apply online at foa.vcfsc.in.
Full official description
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
- Concessional loans at 4% per annum (3.75% for SC women/disabled entrepreneurs)
- Equity funding option: 8% per annum return at exit, or valuation-based return, whichever is higher
- Funding range: ₹10 lakh minimum to ₹15 crore maximum
- For assistance up to ₹5 crore: up to 75% of project cost funded
- For assistance above ₹5 crore: up to 50% of project cost funded
- Maximum loan tenure of 10 years
- TBI-incubated innovative startups can receive up to ₹10 lakh/year for 3 years for operational costs
💡 Why Startups Should Care
This is one of the largest funding instruments available to SC entrepreneurs — up to ₹15 crore, structured as debt or equity depending on your company's needs. For an SC-led Pvt Ltd or Public Ltd company scaling beyond bootstrap stage, this fund can finance a genuine growth round.
Who Can Apply (Eligibility)
- The company must be a Private Limited or Public Limited company (LLPs and sole proprietorships are not directly eligible)
- At least 51% shareholding must be held by Scheduled Caste entrepreneurs with management control
- For assistance up to ₹50 lakh: SC majority shareholding for at least 6 months prior
- For assistance above ₹50 lakh: SC majority shareholding for at least 12 months prior
- Manufacturing, services, and allied sectors including startups are eligible
- SC entrepreneurs with tech-based innovative projects incubated at IITs/NITs or holding patents can also apply
- Caste certificate (SC documentary proof) is mandatory
Exclusions
- Not available to Scheduled Tribes, OBC, or General category entrepreneurs
- Proprietary firms and partnerships are not eligible — must be a company
How to Apply
- Visit foa.vcfsc.in and click "Create an Account" to register.
- Complete your profile and submit a Detailed Project Report prepared by your company or promoters.
- Attach caste certificate and any incubation centre/corporate certification for technology-based ideas.
- Submit the application through the portal for review.
- On approval, financial assistance is disbursed as debt or equity as agreed.
Frequently Asked Questions
What specific type of legal entity must my business be incorporated as in order to be considered eligible for the financial assistance offered under this fund?
Only a Private Limited Company or a Public Limited Company is eligible for receiving finance under this fund.
If my company is applying for financial assistance exceeding ₹50,00,000/-, how long must the mandated minimum 51% Scheduled Caste shareholding have been continuously in place?
For assistance exceeding ₹50,00,000/-, the company must have maintained at least 51% shareholding by Scheduled Caste entrepreneurs with management control for the preceding 12 months.
If the project involves securing a Government subsidy from a central or state department, which mandatory document must be submitted as proof of this arrangement?
If a Government subsidy is available, the sanction letter from the relevant department of the Government of India needs to be submitted along with the proposal.
If my establishment is currently structured as a Proprietorship Firm or a Limited Liability Partnership, can I still apply directly for the financial assistance available?
No, Proprietary Firms or Limited Liability Partnerships (LLP) are not eligible for direct financing. They must convert into a Private Limited or Public Limited Company prior to receiving assistance under the fund.
What crucial documentary proof related to the entrepreneur’s background must be mandatorily provided when submitting the initial proposal application for the fund?
The entrepreneur must submit documentary proofs of belonging to the Scheduled Caste category at the specific time of submitting the proposals. E-documents (electronic documents) are also accepted.
Is this specific pool of concessional finance exclusively intended for entrepreneurs belonging to the Scheduled Castes, or are other social categories also eligible?
Entrepreneurs belonging only to the Scheduled Castes are eligible for assistance under this fund. Entrepreneurs from Scheduled Tribes, Other Backward Classes, or the General category are not eligible.
Once financial assistance has been sanctioned and disbursed to my company, is there a mandatory requirement regarding the continuity of the Scheduled Caste shareholding structure?
Yes, the aggregate shareholding of Scheduled Caste shareholders must be maintained at a minimum of 51% of the total shareholding of the company throughout the entire period the assistance remains in the company.
What are the special ownership and managerial requirements for a company to be officially designated and considered as being owned by a Scheduled Caste woman entrepreneur?
The Scheduled Caste woman entrepreneur should hold at least 51% of the shareholding in the company. Additionally, she must also serve as the Managing Director of the Company.
If I have partners who are not from the target population, what is the minimum aggregate shareholding requirement that Scheduled Caste promoters must collectively maintain in the company?
The aggregate shareholding of Scheduled Caste shareholders must be at least 51% of the total shareholding of the company. This group must also maintain management control of the company.
What criteria apply if I have a technology-oriented innovative project that is currently receiving support from various recognized national incubation centers?
The innovative project must be supported by incubation centers at Indian Institutes of Technology (IITs), National Institutes of Technology (NITs), Premier Business Schools, or Universities. The project needs to show good potential for commercialization and must be at the implementation stage.
What are the eligible business sectors and mandatory nature of the project being set up to qualify for financing under this scheme?
The projects or units must be set up in the manufacturing, services, and allied sectors, including start-ups. It is mandatory that the project ensures the creation of assets out of the funds deployed in the unit.
If I am a disabled entrepreneur seeking financial assistance, which specific government guidelines will be utilized to determine my official qualification status as disabled?
In the case of disabled entrepreneurs, the qualification guidelines issued by the Department of Divyang Welfare will be followed to determine if they qualify as disabled for the purpose of the fund.
Can a newly incorporated Private or Public Limited Company, which succeeded a Proprietary Firm or Limited Liability Partnership, qualify for funding?
Yes, a new company can be eligible if it is a successor entity of a Proprietary Firm, Partnership Firm, One Person Company (OPC), or Limited Liability Partnership. The predecessor entity must have had a sound business model, be in operation for over 6 or 12 months, and have had at least 51% Scheduled Caste shareholding with management control.
For companies seeking assistance up to ₹50,00,000/-, what is the mandatory minimum period for which the Scheduled Caste entrepreneurs must have maintained 51% shareholding with management control?
For assistance up to ₹50,00,000/-, the company must have had at least 51% shareholding by Scheduled Caste entrepreneurs with management control for the past 6 months.
Ready to apply?
Visit the official government portal to apply for this scheme.
Apply on myScheme.gov.inDocuments Required
- Caste certificate
- Detailed Project Report (prepared and submitted by the company/promoters)
- Documentary proof/certificate from incubation centres or corporates (for technology-based ideas)