VCF-SC

1. The projects/units being set up in manufacturing, services and allied sector, including start-ups and units being incubated in the technology business incubators, ensuring asset creation out of the funds deployed in the unit shall be considered.

For Companies Applying for Assistance up to ₹50,00,000/

1. Companies having
2. a. at least 51% shareholding by Scheduled Castes entrepreneurs for the past 6 months with management control OR
3. b. a new Company provided that the new Company is a successor entity of a 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 with sound business model which has been in operation for over 6 months, and the predecessor entity had at least 51% shareholding of the Scheduled Castes entrepreneurs with management control.

For Companies Applying for Assistance above ₹50,00,000/

1. Companies having
2. a. at least 51% shareholding by Scheduled Castes entrepreneurs for the past 12 months with management control OR
3. b. a new Company provided that the new Company is a successor entity of a 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 with sound business model which has been in operation for over 12 months, and the predecessor entity had at least 51% shareholding of the Scheduled Castes entrepreneurs with management control.

For Technology Oriented Innovative Projects

1. A. Innovative ideas selected by Technology Business Incubators (TBIs) for incubation funding to cover the cost of operation and maintenance subject to a ceiling of ₹10,00,000/- on an average per year for a period of three years subject to satisfactory progress.
2. B. New Companies having at least 51% shareholding by first time Scheduled Caste entrepreneurs who have been working in technology oriented innovative projects
3. i. with the support of incubation centers at IITs, NITs, Premier Business Schools, Universities, Institutions, Medical Colleges, NSTEDB under Department of Science & Technology (DST) or supported by corporate, with good potential of commercialization and project is at implementation stage; and/or
4. ii. without the support of Incubations centers but are having patent/copyrights with good potential of commercialization and project is at implementation stage.
5. iii. Projects sanctioned by departments of Government of India after due appraisal.
6. Documentary proofs of being SC will have to be submitted by the Entrepreneur at the time of submitting the proposals.
7. Documentary proofs / certificate from the incubation centers/corporates or documents w.r.t patent/ copyrights in the name of SC entrepreneur need to be submitted at the time of submitting the proposal.
8. Sanction letter of department of Government of India.
9. E-documents will also be accepted.
10. For Companies with sanctioned assistance of above ₹5,00,00,000/-, the money released by the Trust/Fund Manager would be in proportion to the loan tranche released by Bank/department of Govt of India, except in the cases being supported under Innovative ideas category selected by Technology Business Incubators (TBIs) as mentioned at point A above.

Not eligible

1. Entrepreneurs belonging to Scheduled Tribes, Other Backward Classes, or the General category are not eligible under this fund.
2. 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.

Size of Financial Assistance

• Financial assistance available ranges from ₹10,00,000/- (minimum) to ₹15,00,00,000/- (maximum).
• Aggregate financial assistance must not exceed two times the current net worth of the Company.

Funding Tenure

• The maximum tenure for financial assistance is up to 10 years, including the moratorium period in the case of debentures.
• In the case of equity, the decision for exit would be taken on a case-to-case basis, with a maximum tenure up to 10 years.

Returns/Coupons/Interest Rate

• For debt/convertible instruments, the interest/coupon rate is 4% per annum.
• For Scheduled Caste women entrepreneurs and disabled entrepreneurs accessing debt/convertible instruments, the interest/coupon rate is 3.75% per annum.
• In equity investment, the return at the time of exit by way of buyback, strategic investment, or Initial Public Offering (IPO) shall be 8% per annum or as per the valuation, whichever is higher.

Working Capital Gap Funding

• The fund offers working capital gap funding, where a maximum of 20% of the total financial assistance should be earmarked for this purpose for the next 10 years.
• The quantum of such assistance shall be approved by the Investment Committee as per the requirement of the project, on a case-to-case basis.

Technology Business Incubator (TBI) Funding

• Innovative ideas selected by Technology Business Incubators (TBIs) may receive funding to cover the cost of operation and maintenance.
• This funding is subject to a ceiling of ₹10,00,000/- on an average per year for a period of three years, subject to satisfactory progress.

• Moratorium Period for Principal Redemption: In the case of debentures, the moratorium period for the redemption of the principal is on a case-to-case basis, but not more than 36 months from the date of investment in the Company.
• Cost Bearing for Documentation: The fees for the Valuer and the Lawyer for conducting valuation and title search of the property(ies) shall be borne by the Venture Capital Fund for Scheduled Castes (VCF-SC) for the first time.

Disbursement

• For financial assistance up to ₹5,00,00,000/-, investment shall be funded maximum up to 75% of the project cost, and the balance 25% must be funded by the promoters or through Government subsidy under various schemes.
• For financial assistance above ₹5,00,00,000/-, investment shall be funded maximum up to 50% of the project cost.
• For financial assistance above ₹5,00,00,000/-, at least 25% of the project cost shall be funded by promoters or through Government subsidy under various schemes, and the balance 25% can be funded either by promoters, a bank, or any other Financial Institution.

1. Size of Financial Assistance: Financial assistance available ranges from ₹10,00,000/- (minimum) to ₹15,00,00,000/- (maximum).

Funding Tenure

1. The maximum tenure for financial assistance is up to 10 years, including the moratorium period in the case of debentures.
2. In the case of equity, the decision for exit would be taken on a case-to-case basis, with a maximum tenure up to 10 years.

Returns/Coupons/Interest Rate

1. For debt/convertible instruments, the interest/coupon rate is 4% per annum.
2. For Scheduled Caste women entrepreneurs and disabled entrepreneurs accessing debt/convertible instruments, the interest/coupon rate is 3.75% per annum.
3. In equity investment, the return at the time of exit by way of buyback, strategic investment, or Initial Public Offering (IPO) shall be 8% per annum or as per the valuation, whichever is higher.

1. Working Capital Gap Funding: The fund offers working capital gap funding, where a maximum of 20% of the total financial assistance should be earmarked for this purpose for the next 10 years.
2. Technology Business Incubator (TBI) Funding: This funding is subject to a ceiling of ₹10,00,000/- on an average per year for a period of three years, subject to satisfactory progress.
3. Moratorium Period for Principal Redemption: In the case of debentures, the moratorium period for the redemption of the principal is on a case-to-case basis, but not more than 36 months from the date of investment in the Company.

Disbursement

1. For financial assistance up to ₹5,00,00,000/-, investment shall be funded maximum up to 75% of the project cost, and the balance 25% must be funded by the promoters or through Government subsidy under various schemes.
2. For financial assistance above ₹5,00,00,000/-, investment shall be funded maximum up to 50% of the project cost.
3. For financial assistance above ₹5,00,00,000/-, at least 25% of the project cost shall be funded by promoters or through Government subsidy under various schemes, and the balance 25% can be funded either by promoters, a bank, or any other Financial Institution.
4. For companies with sanctioned assistance of above ₹5,00,00,000/-, the money released by the Trust/Fund Manager would be in proportion to the loan tranche/promoter’s contribution released by a Bank/department of Government of India, except in cases supported under the Innovative ideas category selected by Technology Business Incubators (TBIs).

Conditions

1. The shareholding of Scheduled Castes entrepreneurs (at least 51%) has to be maintained till the assistance under this fund is present in the company.
2. In cases where Government subsidy is available, the promoters will have to contribute at least 15% of the project cost.

• Caste Certificate.
• Detailed Project Report (To Be Prepared And Submitted By The Company/Its Promoters).
• Documentary Proofs / Certificate From the Incubation Centers/corporates (For Technology Oriented Innovative Projects With Support Of Incubation Centers).
• Documents Regarding Patent/copyrights in the Name of the SC Entrepreneur (For Technology Oriented Innovative Projects Without Support Of Incubation Centers).
• Sanction Letter (For Projects Sanctioned By Departments Of Government Of India Or In Cases Where Government Subsidy Is Available).