Venture Capital Fund for Scheduled Castes (VCF-SC) — ₹10L to ₹15Cr — Frequently Asked Questions

Assistance ranges from ₹10,00,000 to ₹15,00,00,000, and the exact figure is decided on the merit of the project. It can be extended as debt or convertible instruments bearing 4% per annum — or 3.75% per annum for Scheduled Caste women entrepreneurs and entrepreneurs with disabilities — or as an equity investment that targets an 8% annual return, or better, at exit.

Businesses operating in manufacturing, services or allied sectors can apply, including startups and units being incubated in Technology Business Incubators. The applicant company must have at least 51% shareholding held by Scheduled Caste entrepreneurs, along with management control — maintained for the past 6 months if you are seeking up to ₹50 lakh, or for the past 12 months if you are seeking more than ₹50 lakh. Documentary proof of Scheduled Caste status has to be submitted.

Neither DPIIT recognition nor MSME registration appears among the scheme's stated eligibility conditions. The conditions that are listed relate to shareholding, the sector the unit operates in, management control and documented proof of Scheduled Caste status. For technology-oriented innovative projects, the qualifying routes are incubation backing from an institution such as an IIT or NIT, holding patents or copyrights, or having a project sanctioned by a Government of India department.

It can. VCF-SC offers two financing structures — one is debt or convertible instruments at a concessional 4% per annum (3.75% for SC women and disabled entrepreneurs), and the other is an outright equity investment where the exit is linked to valuation or an 8% annual return. Which structure applies, and the quantum involved, is settled by the Investment Committee based on the project's merit.

There is no closing date. The scheme runs on a rolling, always-open basis, and proposals are taken up by the Screening Committee in first-come, first-served order. Once you submit an online application, it remains valid for a period of 6 months.

The entire process is online. Go to the scheme's application portal at https://foa.vcfsc.in/#/signin and create an account, filling in all mandatory fields and verifying your email ID and mobile number via OTP if prompted, then set a password. After logging in, locate the online application form, complete every mandatory field, and upload the required documents in the specified format and size. Review your entries and uploads carefully, tick the box accepting the terms and conditions, declaration and privacy policy, and submit. A confirmation message will follow.

Documentary proof of Scheduled Caste status is required for the entrepreneurs. The online form also calls for other mandatory documents, which must be uploaded in the specified format and size. At a later stage, valuation and title search reports on property are prepared — and for a first-time valuation and title search, the scheme covers the valuer's and lawyer's fees.

For assistance of up to ₹5 crore, the fund can cover up to 75% of the project cost, with promoters funding the remaining 25%. For assistance above ₹5 crore, the fund's share is capped at up to 50% of the project cost, while promoters and/or banks provide the rest. Money is disbursed in tranches, and release depends on executed legal documents, the sanctioned terms, pre-disbursement conditions and completed valuation and title search reports.

Yes. A new company can qualify if it succeeds a proprietorship or partnership firm that has been in operation for at least 6 months (where the request is up to ₹50 lakh) or 12 months (where it is above ₹50 lakh) and met the 51% SC shareholding requirement. Separately, a new company with 51% SC shareholding working on a technology-oriented innovative project can apply — with or without incubation support — if the project has commercialisation potential or the company holds patents or copyrights, or if the project has been sanctioned by a Government of India department.

Beyond the main financing, the scheme provides working capital gap funding of up to 20% of the total assistance, and support of up to ₹10 lakh per year for 3 years for innovative ideas being nurtured in Technology Business Incubators. It also absorbs the valuer's and lawyer's charges for a first-time property valuation and title search.

The maximum tenure is up to 10 years, which for debentures includes a moratorium on principal redemption of up to 36 months; equity exit decisions are taken case by case within that window. On assessment, a Screening Committee reviews proposals first in first-come, first-served order, after which officials of IFCI Venture Capital Funds Limited or their authorised representatives conduct a detailed appraisal including a site visit. The Asset Management Company then prepares a detailed proposal for the Investment Committee, which sanctions, defers or rejects it and decides the quantum of assistance.

Venture Capital Fund for Scheduled Castes (VCF-SC) — ₹10L to ₹15Cr is offered by Ministry of Social Justice and Empowerment, a government body. It is provided as an investment.