The central government plans to upgrade the employment status and financial condition of SC entrepreneurs via a special grant named Venture Capital Funds. It was launched with minimum funds of Rs.200 Crore and will be sponsored by the Industrial Finance Corporation of India (IFCI). IFCI would act as a Nodal Agency as well as an Asset Management Company (AMC) along with the government under this scheme.
Venture Capital fund is to boost entrepreneurship among Scheduled Caste who constitutes 16.62% of India’s total population (Census 2011).
What is the Scheme?
Any entrepreneur belonging to SC community can get financial support up to Rs. 15 Crore for a period of 6 years under this scheme.
|Benefits upto Rs. 5Crore||Investment shall be funded upto 75% of project cost and 25% will be funded by the promoters|
|Benefits above Rs.5 Crore||Investment here has to be funded upto 50% of project cost, 25% shall be funded by banks/institutions and the rest 25%shallbe funded by the promoters.|
- Only asset created out of the funds set up in scheme shall be considered.
- Women SC entrepreneurs will be preferred while selecting the entrepreneurs.
- Companies that are having 60% of SC staff for continuous 1year in management shall be considered.
Any proposal under this scheme would go through two Committees and four stages-
- Screening Committee (Preliminary Stage)- A proposal first would go through this committee to check whether the proposal is meeting Eligibility Criteria and Preliminary Appraisal Parameters as mentioned in Schedule I. After this the proposal would be taken for detailed screening, appraisal and negotiation process.
- Investment Committee (Final Stage)-
- The detailed proposal then shall be considered by the Investment Company for sanction of loans.
- The level of financial assistance shall be considered by this committee.
- Legal Documentation Stage- After the sanction of loan, Letter of Intent along with the terms and conditions of the loan shall be issued to the beneficiary.
- Disbursement Stage- After all this above mentioned processes, disbursement would be made as per the terms and conditions of the loan. For loans above 5 Crore sanctioned by the committee would have to be in proportion with the loan released by the bank.
Generally 3-4 months time is required for any proposal to get sanctioned for loan.
How to avail the benefits:
Click here to apply
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