Venture Capital Fund for Scheduled Castes
By Ministry of Social Justice and Empowerment
Check your eligibility
Sign up and we'll tell you whether your startup qualifies for this grant.
Quick Answer
A Central Government scheme offering financial assistance through debt/convertible instruments or equity investment to promote entrepreneurship among Scheduled Caste entrepreneurs in manufacturing, services, and allied sectors.
- Funding amount
- ₹10 Lakhs – ₹15 Cr
- Funding type
- Equity
- Application deadline
- Rolling
- Location
- Open to startups registered in India
About this funding program
The "Venture Capital Fund for Scheduled Castes" (VCF-SC) scheme was launched by the Ministry of Social Justice and Empowerment, Government of India, to foster entrepreneurship within the Scheduled Caste community. It aims to provide crucial financial backing, focusing on ventures that demonstrate innovation and leverage growth technologies.
The fund offers flexible financing options, including debt and convertible instruments at concessional interest rates, or equity investment with a clear exit strategy linked to valuation or an 8% annual return. This inclusive approach seeks to overcome financial barriers, enabling SC entrepreneurs to establish and scale their businesses across various economic sectors.
Beyond direct funding, the scheme also incorporates provisions for working capital gap funding and support for innovative ideas nurtured within Technology Business Incubators (TBIs). This holistic support mechanism is designed to address diverse startup needs, from initial project implementation to sustained operational stability, promoting sustainable growth and job creation within the SC community.
Eligibility
See if you're eligible
Full eligibility criteria — entity type, stage, sector, founder profile and registration requirements — plus your fit for this program. Sign up to view.
Funding providers
Benefits & Funding
- Amount
- ₹10 Lakhs – ₹15 Cr
What You Get
The Venture Capital Fund for Scheduled Castes provides substantial financial assistance ranging from ₹10,00,000 to ₹15,00,00,000. This can be availed as debt/convertible instruments with an attractive interest rate of 4% per annum (3.75% for SC women/disabled entrepreneurs) or as equity investment targeting an 8% annual return or higher at exit.
Beyond direct funding, the scheme offers crucial working capital gap funding (up to 20% of total assistance), support for innovative ideas incubated in Technology Business Incubators (up to ₹10 lakh/year for 3 years), and covers valuer and lawyer fees for the first-time property valuation/title search, significantly reducing initial costs for entrepreneurs. The maximum funding tenure is up to 10 years, including a moratorium period of up to 36 months for debentures, providing substantial time for business stabilization and growth. The financial support is disbursed in tranches, often requiring co-financing from promoters.
- Disbursement
- Tranched
Timelines & Process
Applications
Rolling basis
Selection Process
The selection process for the Venture Capital Fund for Scheduled Castes is multi-stage, ensuring thorough appraisal. Initially, proposals are reviewed by a Screening Committee on a first-come, first-served basis for preliminary analysis. Following this, IFCI Venture Capital Funds Limited officials or authorized representatives conduct a detailed appraisal, which includes a physical site visit to the project location. The Asset Management Company (AMC) then prepares a detailed proposal that is presented to the Investment Committee. This committee makes the final decision on sanctioning, deferring, or rejecting the proposal, and determines the quantum of assistance based on the project's merit. Approved companies receive a Letter of Intent (LOI) and term sheet, followed by legal documentation and initiation of valuation and title search reports before fund disbursement.
Application Process
- 1
Register Online
Create an account on the official application portal by providing necessary details and verifying contact information.
You - 2
- 3
- 4
- 5
- 6
- 7
- 8
How to apply
Four steps from draft to disbursement — one action each.
- 1
Draft your application
Answer the form inside the grant tracker — AI drafts each response using your past answers, so you're not starting from a blank page.
- 2
Submit on the official portal
Use the official application link and verify all details before final submission.
- 3
Follow up
Reach out 5–7 days after submitting to confirm receipt and ask about the review timeline.
Program templates & documents
Files the program publishes for applicants — download these and apply in the prescribed format.
Frequently Asked Questions
Who is eligible to apply for the Venture Capital Fund for Scheduled Castes?
The scheme is open to projects and units in manufacturing, services, and allied sectors, including startups and entities being incubated in technology business incubators. A primary requirement is that at least 51% shareholding must be held by Scheduled Caste entrepreneurs, with specific conditions on how long this shareholding must have been maintained depending on the assistance amount.
What kind of financial assistance is available?
Financial assistance ranges from ₹10 lakh to ₹15 crore. It can be provided as debt or convertible instruments with a concessional interest rate of 4% per annum (3.75% for SC women/disabled entrepreneurs), or as equity investment, with an expected return of 8% per annum or higher valuation at exit. The fund also offers working capital gap funding and support for innovative ideas selected by TBIs.
Is there a maximum tenure for the financial assistance?
Yes, the maximum tenure for financial assistance, whether debt or equity, is up to 10 years. For debentures, this includes a moratorium period on principal redemption of up to 36 months. Exit decisions for equity investments are made on a case-to-case basis within this 10-year limit.
Are there specific conditions for disbursement of funds?
Yes, disbursement is made in tranches and is subject to the execution of complete legal documents, sanctioned terms, pre-disbursement conditions, and successful completion of Valuation and Title Search Reports. For assistance up to ₹5 crore, the fund covers up to 75% of the project cost, requiring promoters to fund the remaining 25%. For assistance above ₹5 crore, the fund covers up to 50% of the project cost, with specific promoter/bank contribution requirements for the remainder.
What is the application process?
The application process is entirely online. Applicants must first register and create an account on the official portal. After logging in, they need to fill out the online form, upload all mandatory documents, review the information, agree to the terms, and submit the application. The application is then reviewed by a Screening Committee, followed by detailed appraisal and due diligence including site visits, and finally considered by an Investment Committee for sanction.
What if my company is newly incorporated?
New companies can apply, particularly if they are a successor entity of a proprietary or partnership firm that has been in operation for at least 6 to 12 months (depending on the assistance amount) and met the 51% SC shareholding criteria. New companies with at least 51% shareholding by first-time SC entrepreneurs working on technology-oriented innovative projects (with or without incubation support but with commercialization potential or patent/copyrights) are also eligible.
