The Central Government’s Venture Capital Fund for Scheduled Castes (VCF-SC) gives concessional financial assistance to Scheduled Caste (SC) entrepreneurs to start and grow their businesses. It was launched by the Ministry of Social Justice and Empowerment and is managed by IFCI (Industrial Finance Corporation of India). The fund began on 16 January 2015. It provides assistance of ₹10 lakh to ₹15 crore at a concessional interest rate of just 4% per year — 3.75% per year for women and Divyang SC entrepreneurs.
How much assistance, and in what form
Financial assistance of ₹10,00,000 to ₹15,00,00,000 is available from the fund. The assistance can be in the form of a loan, equity or quasi-equity — that is, not only debt, but also investment as a stake in the company. The aggregate assistance to one company cannot be more than two times its current net worth. Assistance is given for businesses in manufacturing, services and allied sectors. The total corpus of the fund is now ₹750 crore — it began at ₹200 crore.
How much has been given so far
According to official figures, as of 5 December 2025, the VCF-SC had sanctioned ₹587.66 crore to 140 companies and disbursed ₹419.85 crore to 119 companies. The fund was created especially for first-generation SC entrepreneurs, who often find it hard to raise large capital from banks. Alongside it, the Ambedkar Social Innovation and Incubation Mission (ASIIM) also runs under this fund, helping SC youth turn new ideas into businesses through incubation and support.
Who can apply
Assistance is given only to companies in which SC entrepreneurs hold at least 51% shareholding with management control. The company must be a Private Limited or Public Limited company — a new company can also apply if it is the successor of a firm or LLP that has been in operation for at least 6 or 12 months with at least 51% SC shareholding. The entrepreneur must submit proof of belonging to the Scheduled Castes. Women and disabled SC entrepreneurs are given priority.
How to apply
Applications are made online — by filling the form on the official website vcfsc.in. After the application, the IFCI Venture team examines the proposal, which may include a visit to the project site. Money is released only after the documents are complete and the legal process is done. This is not an instant loan — assistance is sanctioned only after a full examination of the proposal, so keep a solid business plan and correct documents ready in advance. Never pay anyone in the name of the application.
Frequently Asked Questions
Q1: How much assistance is given under VCF-SC?
A: ₹10 lakh to ₹15 crore — as a loan, equity or quasi-equity, not more than twice the company’s net worth.
Q2: What is the interest rate?
A: 4% per year — 3.75% per year for women and Divyang SC entrepreneurs.
Q3: Who is eligible for this fund?
A: Companies in which SC entrepreneurs hold at least 51% shareholding with management control.
Q4: How do I apply?
A: Apply online on the official website vcfsc.in — assistance is released only after examination and completion of documents.
Useful links
- VCF-SC official website: https://www.vcfsc.in/
- Venture Capital Fund for SC on MyScheme: https://www.myscheme.gov.in/schemes/vcf-sc
- List of all 726 Central Government schemes: /english/kendra-sarkar-ki-yojnayen-2/
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