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Learn how this government scheme supports State Scheduled Castes Development Corporations (SCDCs) in driving SC community development and entrepreneurship.
The (SCDCs) is a Central Sector Scheme introduced in 1978-79 by the Ministry of Social Justice and Empowerment. Its core purpose is to facilitate the economic development of Scheduled Caste (SC) families living below the poverty line.
SCDCs are operational in 23 states and 4 union territories and act as a vital link between SC beneficiaries, financial institutions, and government poverty alleviation programs. They mobilise finance, provide missing inputs like margin money loans and subsidies, and help SC families undertake profitable, income-generating activities.
The Central Government and State Governments share the equity capital of these Corporations in a 49:51 ratio, respectively.
The Scheme of Assistance to State Scheduled Castes Development Corporations offers several key benefits to Scheduled Caste families:
Financial Leverage: It functions as a catalyst to generate credit from commercial banks and other financial institutions for SC beneficiaries, providing the initial push for their economic schemes.
Concessional Finance: Financial assistance is provided in the form of Margin Money loans at a low rate of interest, which forms a part of the total project cost.
Subsidy Component: The scheme includes a subsidy component to reduce the overall repayment liability of the beneficiary, making the projects more viable and sustainable.
Support for Diverse Sectors: Financial support is extended for a wide range of employment-oriented economic activities, including:
Agriculture and allied activities (e.g., minor irrigation)
Small-scale industry
Transport
Trade and service sector
Promotion of Schemes: SCDCs actively identify eligible SC families, motivate them to undertake suitable economic schemes, and sponsor these schemes to financial institutions for credit support.
The eligibility criteria for the ultimate beneficiaries of the schemes implemented by the SCDCs are:
Applicants must belong to the Scheduled Castes as per the relevant state certificate
Family income criteria may apply (in many cases, as per beneficiary‐oriented schemes via SCDCs)
The applicant should propose a viable economic activity/project (agriculture, trade, industry, or services) through SCDC linkage
Applicant must not be a defaulter of any financial institution (as per SCDC scheme guidelines)
In many cases, age criteria (e.g., 18-60 years) may apply, depending on individual SCDC scheme implementation
While specific requirements may vary by SCDC, the essential documents generally needed for application are:
| Document Type | Description |
|---|---|
Caste Certificate |
Proof of belonging to the Scheduled Caste community. |
Income/BPL Certificate |
Certificate from the competent authority confirming the annual family income or BPL status. |
Identity Proof |
Aadhaar Card, Voter ID, PAN Card, or Passport. |
Address Proof |
Ration Card, Electricity Bill, or other utility bills. |
Project Proposal |
A detailed Business Plan for the intended economic activity (e.g., small-scale industry, transport, trade). |
Bank Account Details |
Bank passbook/statement for linking credit and subsidy. |
Note: The required documents may vary slightly across States. Refer to your State SCDC office for specific details.
Follow these simple steps to apply for financial assistance through your State Scheduled Castes Development Corporation:
Contact the relevant State SCDC in your state or district
Obtain the application form for the SCDC-linked economic activity scheme
Fill in the form and attach the required documents listed above
Submit the completed form at the SCDC office or authorised bank tie-up partner
SCDC assesses the eligibility and viability of the project and forwards it to financial institutions if required
On approval, SCDC arranges a margin money loan/subsidy and ties up with a bank for the balance credit
Disbursement follows, and monitoring of the project begins
Explore other government initiatives that promote entrepreneurship and financial inclusion among the Scheduled Caste communities.
| Scheme Name | Description |
|---|---|
Pradhan Mantri Anusuchit Jaati Abhyuday Yojana (PM‑AJAY) |
Focuses on SC entrepreneurship via subsidy, skill development, and infrastructure. |
Credit Enhancement Guarantee Scheme for Scheduled Castes Entrepreneurs |
Provides a guarantee cover to SC entrepreneurs to access bank credit. |
Financial Assistance to Industrial Co‑operative Societies of Scheduled Castes |
Targets SC-cooperatives with financial assistance for industrial projects. |
The Scheme of Assistance to State Scheduled Castes Development Corporations offers structured support for SC families to engage in income-generating activities. Using this scheme along with other government programmes allows you to access margin money, subsidy, and credit linkages. Meanwhile, if you are considering business expansion or require capital for your enterprise, you may explore and compare business loans on Bajaj Markets for competitive interest rates and flexible repayment options. It can be a complementary source of funding alongside this scheme.
The primary objective of the Scheme of Assistance to SCDCs is to promote the socio-economic development of Scheduled Caste families living below the poverty line. It achieves this by identifying viable economic schemes, motivating SC families to undertake them, and providing crucial financial support in the form of margin money and subsidy to augment institutional credit and reduce the beneficiaries' repayment burden.
The direct beneficiaries eligible to receive financial assistance under the schemes supported by the SCDCs are individuals belonging to the Scheduled Caste (SC) community who are living below the poverty line (BPL). The SCDCs identify these eligible families and channel the financial support to them for various income-generating activities.
The financial support provided to the beneficiaries consists of a package that includes a bank loan (institutional credit), a Margin Money loan from the SCDC (at a low rate of interest), and a subsidy component. The Margin Money and Subsidy act as the government's contribution to the project cost, which helps the beneficiary secure the bank loan and reduces the final amount they need to repay.
Yes, individual SC entrepreneurs can apply, but they do so through the State Scheduled Castes Development Corporations (SCDCs) or their designated State Channelising Agencies (SCAs). The SCDC/SCA is the nodal body that accepts the application, appraises the project, provides the margin money and subsidy, and sponsors the case to the bank for the term loan component. Direct application to the Ministry of Social Justice and Empowerment or the Central Government is not the prescribed route.
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