State Scheduled Castes Development Corporations scheme is running, and registration is open for Scheduled Caste families living below the poverty line. Under this central scheme, eligible people can get support through share capital, margin money loans, and subsidies to start an employment-oriented business and improve their livelihood.
The Ministry of Social Justice and Empowerment releases share capital to the State Scheduled Castes Development Corporations (SCDCs) in a 49:51 ratio between the central and state governments. There are 27 such state-level corporations working for the economic development of Scheduled Castes, and some also serve Scheduled Tribes, OBCs and minorities.
Scheme of Assistance to State Scheduled Castes Development Corporations - Introduction
This central scheme gives strong support to Scheduled Caste families striving for self-reliance. The Department of Social Justice and Empowerment manages it, and it focuses on Scheduled Caste families who live below the poverty line. By supporting the State Scheduled Castes Development Corporations across the country, the scheme helps close the gap in financial resources for this community.
The government designed this scheme to give a helping hand through share capital contributions, low-interest margin money loans, and useful subsidies. If you belong to the Scheduled Castes category and want to start a business or create an income source, this scheme gives the required backing to help you move ahead.
Key Information
| Scheme Name | Scheme of Assistance to State Scheduled Castes Development Corporations |
|---|---|
| Level | Central |
| Scheme For | Individual |
| Beneficiary States | All |
| Category | Social welfare & Empowerment, Business & Entrepreneurship |
| Target Beneficiaries | Individual |
| Sub Category | Financial assistance, Loan, Setting up/start-up/entrepreneurship |
| Benefit Type | Composite |
| DBT Scheme | No |
| Nodal Ministry | Ministry of Social Justice and Empowerment |
| Nodal Department | Department of Social Justice & Empowerment |
| Tags | Scheduled Caste, Employment, Agriculture, Industry, Transport, Subsidy |
Benefits
This scheme gives complete financial backing to help you reach your professional goals:
- Margin money loans: Financial support is given as margin money loans at a low rate of interest to keep your repayment burden low.
- Subsidy: Government subsidy is available to lower your overall loan repayment liability.
- Subsidy ceiling: The subsidy amount and ceiling follow the standards set under the Integrated Rural Development Programme.
- Credit support: You get access to credit through tie-ups with commercial banks, the National Scheduled Castes Finance and Development Corporation, and the National Safai Karamcharis Finance and Development Corporation.
Eligibility
To qualify for this support, you should meet these simple conditions:
- Scheduled Castes community: You must belong to the Scheduled Castes community.
- Below poverty line: You must be living below the poverty line (BPL).
Application Process
You can apply through an offline process by reaching out to your local development office. Follow the steps given below.
STEP 1 - Visit the nearest State Scheduled Castes Development Corporation (SCDC) office in your district. You can check the official list of SCDC addresses and ask for the official application form there.
STEP 2 - Fill in every detail in the form correctly. Attach self-attested copies of all the required documents, and sign and date the application.
STEP 3 - Hand over the completed application and supporting documents to the SCDC office staff.
Keep a photocopy of your submitted application and the acknowledgement receipt provided by the office for your records.
Documents
Keep the following documents ready for a smooth application process:
- Caste Certificate: A valid Caste Certificate.
- Income Proof: Current Income Certificate or BPL Certificate.
- Identity Proof: Standard identity proof.
- Address Proof: Valid address proof.
- Project Proposal: A clear project proposal or business plan describing your intended work.
References
Revised Guidelines 2017-18 for SCDCs
State/UT wise Central Equity Share since 2011-12
State/UT wise Beneficiaries covered by SCDCs since 2011-12
List of 27 SCDCs with Addresses
Development Action Plan for Scheduled Castes (DAPSC) Portal
FAQ's
What community must I belong to for eligibility?
You must belong to the Scheduled Castes community as defined under the Constitution of India.
Can I apply if my family income is above the poverty line?
No, this scheme is specifically designed for individuals living below the poverty line.
What types of businesses can I start?
You can use the assistance for agriculture, minor irrigation projects, small-scale industries, transport services, or general trading and service sector jobs.
How is the share capital divided?
The Central Government provides 49% of the share capital, while the State Government contributes the remaining 51%.
How does the subsidy help me?
The subsidy is there to lower your total repayment liability. For example, if Ramesh takes a loan for a small shop, the subsidy ensures he pays back significantly less than the original loan amount.
Which institutions help provide credit?
You can get credit through banks, the National Scheduled Castes Finance and Development Corporation, or the National Safai Karamcharis Finance and Development Corporation.
When was this scheme started?
The government introduced this scheme in 1978-79.
Where is this scheme operating?
Currently, active SCDC offices function in 23 states and 4 union territories.
What is the minimum recovery rate for the state to receive further funding?
The state must maintain at least a 60% recovery rate on the loans disbursed to beneficiaries.
Are there relaxations in recovery rates for specific states?
Yes, 11 states with high Scheduled Castes populations have relaxed recovery conditions reflecting their past performance.
Is there a utilization requirement for the funds?
Yes, states must utilize at least 75% of the previously released Equity Capital to qualify for new assistance.
Who decides the project costs?
The specific cost norms and guidelines for projects are set by your respective State Government and the SCDC.
What are the interest rates on the loans?
The margin money loans are offered at a low interest rate to ensure affordability for the beneficiaries.
How is the central share of money sent to the corporations?
The funds are typically sent directly to the relevant SCDC or routed through the National Scheduled Castes Finance and Development Corporation.