Scheme of Assistance to State Scheduled Castes Development Corporations
The Scheme of Assistance to State Scheduled Castes Development Corporations gives central share capital to State SCDCs in a 49:51 ratio with the State government. The SCDCs use it to fund income-generating projects for Scheduled Caste families living below double the poverty line, through subsidy, margin money loans and bank credit. Individuals apply to their State SCDC, not the Centre.
| Ministry | Ministry Of Social Justice and Empowerment |
|---|---|
| Benefit | Central share capital to State SCDCs that finance income-generating schemes for SC families |
| Maximum benefit | Depends on the project financed by the State SCDC |
| Application mode | Institutional (Centre funds SCDCs; individuals apply to their State SCDC) |
| Helpline | Not centrally published; contact your State SC Development Corporation |
| Official website | https://socialjustice.gov.in/ |
What is the Scheme of Assistance to State SCDCs?
The Scheme of Assistance to State Scheduled Castes Development Corporations is a programme of the Ministry of Social Justice and Empowerment. According to the Department of Social Justice and Empowerment, it provides central share capital to the State Scheduled Castes Development Corporations (SCDCs), which are the State-level bodies that finance the economic development of Scheduled Caste families.
This is an institutional financing scheme, not a direct citizen benefit. The Centre does not pay individuals. It capitalises the State corporations, and those corporations in turn lend to and subsidise Scheduled Caste families for income-generating activities. So a Scheduled Caste person who wants help setting up a small enterprise applies to their State SCDC, not to the central Ministry.
State SCDCs exist in most States and Union Territories. They act as the delivery arm for economic-empowerment finance, complementing the apex central body, NSFDC.
How the funding works
According to the Department, the central and State governments jointly capitalise each SCDC:
- The share capital is contributed in a 49:51 ratio, the central government 49% and the State government 51%.
- This shared equity forms the corpus the SCDC uses.
- The SCDC deploys the corpus as subsidy, margin-money loans and by channelising bank credit for viable income-generating projects.
Because the money revolves: loans are repaid and re-lent. The corpus supports successive batches of beneficiaries over the years.
What the State SCDCs finance
State SCDCs support Scheduled Caste families across a wide range of livelihood activities, typically including:
- Agriculture and allied activities — dairy, poultry, goatery, land development.
- Small industry and manufacturing units.
- Trade and business ventures and service enterprises.
- Transport and other self-employment schemes.
- Skill development and training to make beneficiaries employable or self-employed.
The financing is usually a package: a subsidy element, a margin-money loan from the SCDC at concessional interest, and the balance as a bank loan that the SCDC helps arrange.
Who is eligible?
Because the scheme has two layers, eligibility differs.
For the central assistance (the scheme proper):
- State Scheduled Castes Development Corporations are eligible to receive central share capital.
- Individuals cannot apply for the central assistance. There is no citizen-facing form for the scheme itself.
For SCDC finance (who benefits):
- A person who belongs to a Scheduled Caste and whose family income is within double the poverty line (as defined by the SCDC) is eligible to seek finance.
- The applicant must have a viable income-generating project.
Who is not eligible for SCDC finance:
- A person who is not a member of a Scheduled Caste cannot be financed under this channel.
- Families whose income is above the SCDC's ceiling are not eligible.
What documents are required?
| Document | Mandatory | Notes |
|---|---|---|
| Caste certificate | Yes | Proof the applicant is SC |
| Income certificate | Yes | Within double the poverty line |
| Project / business proposal | Yes | The activity to be financed |
| Bank account details | Yes | For subsidy and loan disbursal |
| Aadhaar card | No | Commonly required by SCDCs |
How to apply
Because the Centre funds the corporations and the corporations fund individuals, there are two routes.
Route for an individual (to the State SCDC):
- Contact your State Scheduled Castes Development Corporation office or its website and ask for the income-generating loan/subsidy scheme.
- Submit the application form with your caste certificate, income certificate, project proposal and bank details.
- The SCDC appraises the project, sanctions the subsidy and margin-money loan, and ties up any bank credit; the amount is then disbursed for your activity.
Route for a State SCDC (the central assistance):
- The State SCDC and the State government propose the annual share-capital requirement to the Ministry of Social Justice and Empowerment.
- The Ministry releases the central share (49%) against the State's matching contribution.
Where to get help
- Your State Scheduled Castes Development Corporation. The first point of contact for individuals seeking finance.
- National Scheduled Castes Finance and Development Corporation (NSFDC). The apex body that refinances the State SCDCs.
- Ministry of Social Justice and Empowerment, socialjustice.gov.in, for the scheme guidelines.
No fee is payable to any agent for a loan or subsidy application. Deal only with the State SCDC and your bank.
Documents required
Frequently asked questions
Can an individual apply directly for this scheme?
No. The scheme funds State Scheduled Castes Development Corporations (SCDCs), not individuals. A Scheduled Caste person seeking finance for an income-generating activity applies to their own State SCDC, which then uses the pooled central and State share capital to support the project.
What is the funding pattern between the Centre and States?
The central government and the State government contribute to the share capital of each State SCDC in a 49:51 ratio — the Centre 49% and the State 51%. This shared equity is the corpus the SCDC uses to finance schemes for Scheduled Caste families.
What do the State SCDCs do with the money?
SCDCs finance income-generating schemes for eligible Scheduled Caste families through a mix of subsidy, margin-money loans at low interest, and by channelising credit from banks. They also take up skill training and support for self-employment ventures.
Who benefits from the SCDCs?
Scheduled Caste families living below double the poverty line are the target group. The SCDC helps them set up small enterprises in agriculture, allied activities, industry, trade or services.
Is the assistance a grant or a loan?
It is usually a blend. The SCDC typically provides a subsidy component and a margin-money loan, and arranges the balance as bank credit. The exact mix depends on the individual State SCDC's own norms.
How is this different from NSFDC?
NSFDC (National Scheduled Castes Finance and Development Corporation) is an apex central body that channels funds and refinance to the State SCDCs. This scheme provides the share capital that capitalises the State corporations themselves.
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