Self-Employment Scheme for Scheduled Castes and Tribes

What is the Self-Employment Scheme for Scheduled Castes and Tribes?

Self-Employment Scheme for Scheduled Castes and Tribes is a livelihood scheme run by the Social Welfare Department, Government of Uttarakhand for families from Scheduled Caste (SC) and Scheduled Tribe (ST) communities who live below the poverty line. The scheme helps such families start a small income-generating venture by combining a bank loan with a government subsidy and low-interest margin money, so that a family with little capital of its own can still set up a shop, a service unit, a small manufacturing activity or a transport business.

According to the myScheme record maintained for the scheme, the total project can be financed with a bank loan of Rs 20,000 to Rs 7,00,000 arranged through nationalised banks. On top of the loan, the government provides a subsidy of 50 percent of the project cost subject to a maximum of Rs 10,000, and margin money of 25 percent of the project cost that carries a concessional interest rate of just 4 percent per year. The mix of subsidy and cheap margin money is what makes the scheme different from an ordinary bank loan.

The aim of the scheme is to move SC and ST families away from wage labour and towards self-reliance. By putting a productive asset. A shop, a machine, a vehicle or livestock, in the hands of the family, the scheme is meant to create a steady source of income that lifts the household above the poverty line over time.

Who is eligible for the Self-Employment Scheme for Scheduled Castes and Tribes?

You can apply if:

• You belong to a Scheduled Caste or Scheduled Tribe recognised in Uttarakhand.
• Your family is below the poverty line (BPL).
• Your annual family income does not exceed Rs 15,975 if you live in a rural area or Rs 21,206 if you live in an urban area, as recorded on the scheme's myScheme listing.
• You are not a defaulter of any bank or financial institution.
• You have not previously taken a subsidy under any other government self-employment scheme.

You cannot apply if:

• You do not hold a valid SC or ST caste certificate.
• Your family income is above the rural or urban ceiling stated above.
• You are an existing loan defaulter at a bank or financial institution.
• You have already availed a government subsidy under an earlier scheme.

Where the proposed project is a passenger or goods transport vehicle, the applicant must also hold a valid commercial driving licence, because the department will not sanction a vehicle to someone who cannot legally drive it commercially.

What benefits does the scheme provide?

The scheme is built around three linked components that together fund the project cost:

• Bank loan of Rs 20,000 to Rs 7,00,000 through a nationalised bank, sized to the project.
• Government subsidy of 50 percent of the project cost, capped at Rs 10,000. This portion does not have to be repaid.
• Margin money of 25 percent of the project cost at a concessional interest rate of 4 percent per year.

The eligible sectors are deliberately broad; agriculture and allied activities, services, small business and transport. In practice this covers retail shops, tea and food stalls, tailoring, electronics or cycle repair units, small manufacturing, dairy and goat rearing, and small commercial vehicles. The department expects the venture to generate enough income to service the bank loan and leave a surplus for the family.

To see how the three parts fit together, take a project costed at Rs 40,000. The bank sanctions the bulk of the amount as a term loan, the department releases a subsidy of 50 percent of the project cost capped at Rs 10,000 (a grant the family never repays), and 25 percent of the project cost is provided as margin money carrying interest of only 4 percent a year. The remaining bank loan is repaid at the bank's normal terms. The subsidy plus the cheap margin money lower the effective borrowing cost sharply compared with an ordinary commercial loan, which is the whole point of routing SC and ST families through this scheme rather than the open market.

What documents are required?

Keep two sets of self-attested photocopies. The caste and income certificates must be current, as offices often reject certificates older than the period they specify.

How to apply for the Self-Employment Scheme for Scheduled Castes and Tribes

The scheme is applied for offline through your block-level Social Welfare machinery. Follow these steps:

1. Collect or download the application form from the Social Welfare Department, either at socialwelfare.uk.gov.in or from your block office.
2. Fill in every field and attach the caste certificate, BPL certificate, income certificate, Aadhaar, bank passbook and a photograph. Add a project cost estimate or quotation for the activity you plan to run.
3. Submit the completed form to the Village Development Officer, Assistant Social Welfare Officer or Block Development Officer for your area.
4. Attend the selection stage, in rural areas beneficiaries are approved in a Gram Sabha meeting, and in urban areas through an interview with the department.
5. Complete the bank formalities once selected. The nationalised bank sanctions the loan, the subsidy and margin money are added, and the amount is released for the project.

How do I check the status of my application?

The scheme runs offline, so there is no self-service online status tracker. To check where your file stands, contact the Assistant Social Welfare Officer or the District Social Welfare Office where you submitted the form, quoting the acknowledgement or receipt they gave you. You can also call the Social Welfare Department helpline on 1800-180-4236. Because approval passes through a Gram Sabha or interview and then a bank, it is worth following up at each stage rather than waiting silently.

Why do applications get rejected, and how to fix them?

• Income above the ceiling, the single most common reason. Make sure your income certificate reflects a figure within Rs 15,975 (rural) or Rs 21,206 (urban).
• Missing or expired caste or BPL certificate — get fresh certificates from the Tehsildar before applying.
• Existing bank default, clear or regularise any earlier loan first, as banks will not sanction a fresh loan to a defaulter.
• Earlier subsidy already taken. A family that has used a government subsidy under another scheme is not eligible.
• No commercial licence for a vehicle project, obtain the licence before proposing a transport venture.

Where do I raise a complaint?

For grievances: delays, a rejected file, or a subsidy not released, approach the District Social Welfare Officer first, and escalate to the Directorate of Social Welfare, Government of Uttarakhand if the matter is not resolved. The department helpline 1800-180-4236 and the state CM helpline 1905 can also log complaints. The scheme is free to apply for; no agent or middleman should be paid to get a name added to the beneficiary list.