The Ministry of Social Justice and Empowerment has approved significant funding across three major schemes to support business creation and rehabilitation among disadvantaged groups. Combined approvals exceed Rs 755 crore, with investments expected to generate around 4,500 jobs and create productive assets worth nearly Rs 800 crore.
What has been approved and how much money is involved
Under the Venture Capital Fund for Scheduled Castes (VCF-SC), which operates with a total corpus of Rs 750 crore, the government has approved Rs 613.02 crore for 145 companies as of May 2026. Of this approved amount, Rs 437.74 crore has already been disbursed to 123 companies. The fund offers loans between Rs 10 lakh and Rs 15 crore at 4 per cent interest.
The Venture Capital Fund for Backward Classes (VCF-BC), launched in October 2019 with a corpus of Rs 200 crore, has approved Rs 142.88 crore for 31 companies. Disbursements so far total Rs 70.23 crore to 19 companies. This fund provides assistance between Rs 20 lakh and Rs 15 crore at 6 per cent interest.
A sub-scheme called the Ambedkar Social Innovation and Incubation Mission (ASIIM), started on September 30, 2020, supports young Scheduled Caste researchers and students with innovative business ideas. It has sanctioned Rs 29.11 crore to 114 companies, with Rs 13.27 crore disbursed to 91 companies. Individual grants go up to Rs 30 lakh.
The third initiative, the rehabilitation component under the Support for Marginalised Individuals for Livelihood and Enterprise (SMILE) Scheme, has released Rs 46.16 crore from its launch on October 23, 2023 through the 2025-26 fiscal year. This includes Rs 27.17 crore released during 2025-26 alone.
What this means for you
If you belong to a Scheduled Caste or Backward Class community and have a viable business idea, you can apply for concessional loans to start or expand your enterprise. Young innovators from Scheduled Caste backgrounds with technology-driven or socially relevant ideas have a dedicated funding pathway. For those currently engaged in begging, the government offers a comprehensive support system including shelter, counselling, healthcare, skill training and livelihood assistance to help them transition to dignified economic activity.