The Union Ministry of Social Justice and Empowerment has created a very encouraging ‘Venture Capital Fund’ for prospective entrepreneurs belonging to the Scheduled Caste category. They can now take a loan of Rs. 50 lakh to Rs. 15 crore for setting up their businesses.
The government has come up with some great news for prospective entrepreneurs belonging to the Scheduled Caste category.
In a recent move, a Rs. 250 crore ‘Venture Capital Fund’ has been created by the Union Ministry of Social Justice and Empowerment, for them.
The fund will work based on combined action by the ministry and the Industrial Finance Corporation of India (IFCI). According to Union Minister Vijay Sampla, Rs. 200 crore will be provided by the department to IFCI, following which, IFCI will add Rs. 50 crore from its own resources.
Any person from the SC category who is working towards an entrepreneurial venture, can thus get an easy loan of Rs. 50 lakh – Rs. 15 crore from this fund. The loan can then be returned in the form of easy instalments from the profits of the business after it has been set up. People belonging to the general category can also apply for the loan if they have a 60% partnership with those from the SC category, in their upcoming venture. They will be required to make sure that this partnership continues till the entire loan amount is cleared.
The fund has been set up with the view of increasing advantages for people belonging to the SC category, and for encouraging them to move forwards in their respective fields of work.