Dalit Bandhu

Dalit Bandhu is a welfare scheme launched by Telangana government in August 2021 to help Scheduled Caste (SC) families. It offers ₹10 lakh as a one-time grant for setting up an income generating business, given as a 100% grant without any bank loan linkage.

Scheme has been closed or it was a one time scheme which has been closed by the government.

The scheme was started to help SC families start their own work and become financially independent. Since getting a bank loan is often hard for poor families, the state decided to give this money as a direct grant so that families can choose a business that suits their skills and local needs. The money is paid straight into the bank account of the eligible family through DBT.

Dalit Bandhu - Introduction

Dalit Bandhu works as a welfare scheme of Telangana government to lift Scheduled Caste (SC) families. By offering ₹10 lakh as financial support, this scheme helps families start their own business without the stress of traditional bank loans.

The scheme was made to remove dependence on credit. Families can pick a business that matches their skills and the local market, such as small retail shops, manufacturing units, transport, or animal husbandry. The main aim is to create a steady source of income and improve the living standard of the whole family.

Under the earlier rounds, about 40,000 families received the grant and another 1.3 lakh families were given proceedings. As per the 2026-27 budget reports, the new state government has not made any allocation for the scheme, so fresh applications are currently on hold.

Key Information

Benefits

Dalit Bandhu brought major gains to eligible SC families by focusing on long-term economic growth. The main benefits include:

Financial Independence: Eligible families received a one-time grant of ₹10 lakh as a 100% subsidy. Since this is not a loan, there is no repayment or interest burden.

Business Freedom: Families could choose an income generating activity that matches local market needs and personal skills, such as small-scale retail, manufacturing, or livestock farming.

Employment Creation: As the business grows, it helps create jobs in the local area, which directly supports poverty reduction within the community.

Inclusive Development: By providing these resources, the state gave poor and left out groups a fair chance to take part in the economy, reducing old disparities and improving social standing.

Eligibility

To benefit from Dalit Bandhu, a family had to meet the following criteria:

1. The applicant must belong to the Scheduled Caste (SC) community.
2. The applicant should be a permanent resident of Telangana.
3. Family annual income should be below ₹2.5 lakh.
4. The family should not own more than 3 acres of agricultural land or more than one residential house.
5. The applicant should be between 25 and 50 years of age.
6. The applicant must have passed at least the 10th standard.
7. The applicant should have no prior criminal record.

For example, if Ravi, a resident of Telangana, belongs to the SC community and has an annual household income of ₹1.8 lakh with no prior government loan benefit, he may qualify for the program.

Exclusions

Certain restrictions were applied to make sure the grant reaches those who need it most:

• Families with an annual income above ₹2.5 lakh were not eligible.
• Individuals who had already received other government loans or large subsidies could be excluded.
• Those owning large assets, like agricultural land beyond 3 acres or multiple residential properties, were not eligible.
• Individuals with professional degrees in fields like medicine or engineering were generally excluded from this program.

Application Process

Application Steps

Applicants could start by visiting the official portal at Official Dalit Bandhu Portal. The government identification process generally included these steps:

• Local authorities carried out a survey to identify eligible SC families based on socio-economic conditions.
• Once identified, the applicant had to submit the application form along with the required documents to the local Scheduled Castes Development Corporation office.
• Officials reviewed the proposed business plan to check that it was viable.
• After approval, the grant of ₹10 lakh was credited directly into the bank account through a direct benefit transfer.

Documents

Applicants were asked to keep the following documents ready:

• Caste certificate

• Bank account details (Passbook)

• Valid mobile number

• Aadhaar card

• Voter ID card

• Residential proof

• Rice Card or Food Security Card

References

Official Dalit Bandhu Portal

Telangana Chief Minister Official Website

News report on 2026-27 budget for Dalit Bandhu

FAQ's

Who is eligible for this scheme?

The scheme was intended for economically weaker SC families in Telangana. Eligibility was decided through a targeted social audit and local surveys.

Is this a loan that needs to be repaid?

No, this is not a loan. Eligible families received ₹10 lakh as a 100% grant, so there is no repayment or interest involved.

Can the funds be used for any business?

Applicants were expected to choose a viable income generating activity. The government provided guidance on business selection to make sure the chosen venture had a good chance of success in the region.

What documents are mandatory?

Applicants had to submit the Aadhaar card, residence proof, bank passbook, and proof of SC status during the verification process.

Is the scheme still open in 2026?

As per the 2026-27 budget reports, the current state government has not made any allocation for Dalit Bandhu, so new applications are currently on hold. The official portal remains live for reference.

Where can I find more help?

You may visit the district Scheduled Castes Development Corporation office or check the official components page for more details on supported business sectors.