The Indian government has implemented several schemes to support MSMEs led by Scheduled Caste (SC) and Scheduled Tribe (ST) entrepreneurs. These schemes offer financial assistance, skill development, technology upgradation, and access to markets to promote inclusive economic growth and uplift SC/ST communities. Here’s an overview of the key MSME schemes specifically designed for SC/ST entrepreneurs:

1. National SC-ST Hub

• Objective: To encourage SC/ST-owned businesses to leverage government procurement opportunities and build business capacity.
• Features:
  • Offers support for technology upgradation, capacity building, and market access.
  • Provides assistance in obtaining quality certifications and participating in international trade fairs.
  • Facilitates mentorship programs, skill development, and networking opportunities.
• Eligibility: SC/ST entrepreneurs with a minimum of 51% ownership in MSMEs.

2. Stand-Up India Scheme

• Objective: To provide financial assistance to SC/ST and women entrepreneurs to establish new greenfield businesses.
• Features:
  • Provides loans between ₹10 lakh to ₹1 crore for new businesses in manufacturing, services, or trading sectors.
  • Loans include both term loans and working capital components with flexible repayment tenure of up to 7 years.
  • The scheme also provides handholding support, including guidance on registrations, licenses, and finance-related counseling.
• Eligibility: SC/ST and women entrepreneurs starting a new business or expanding an existing one.

3. Credit Enhancement Guarantee Scheme for Scheduled Castes (CEGSSC)

• Objective: To improve access to credit for SC entrepreneurs by providing credit guarantees on loans.
• Features:
  • Loans up to ₹5 crore are offered with partial credit guarantees, reducing the risk for banks and financial institutions.
  • Provides guarantee coverage on loans for working capital, expansion, and modernizations.
• Eligibility: SC entrepreneurs who own 51% or more of the business equity.

4. Special Credit Linked Capital Subsidy Scheme (SCLCSS) for SC/ST

• Objective: To encourage SC/ST entrepreneurs to upgrade their technology and improve productivity.
• Features:
  • Offers a 25% subsidy on capital investment for technology upgrades, capped at ₹25 lakh.
  • Applicable for businesses in sectors such as manufacturing, service, and trading.
• Eligibility: SC/ST-owned MSMEs that are upgrading their technology or acquiring new machinery.

5. Prime Minister’s Employment Generation Programme (PMEGP) for SC/ST

• Objective: To generate employment opportunities through the establishment of new micro-enterprises.
• Features:
  • Provides a capital subsidy of up to 35% in rural areas and 25% in urban areas for SC/ST entrepreneurs.
  • The scheme is implemented through the Khadi and Village Industries Commission (KVIC), District Industries Centers (DICs), and other nodal agencies.
• Eligibility: SC/ST entrepreneurs above 18 years of age looking to set up new micro-enterprises.

6. Venture Capital Fund for Scheduled Castes (VCF-SC)

• Objective: To provide financial support to SC entrepreneurs through venture capital funding, with a focus on business growth and expansion.
• Features:
  • Offers funding assistance between ₹50 lakh to ₹15 crore for businesses with growth potential.
  • Investments are made through quasi-equity, equity, and other financial instruments to promote business scalability.
• Eligibility: SC entrepreneurs with at least 51% ownership in businesses with high growth potential.

7. Performance & Credit Rating Scheme for SC/ST MSMEs

• Objective: To help SC/ST entrepreneurs build a strong credit profile and increase their credibility in the financial market.
• Features:
  • Provides subsidies on the cost of obtaining credit ratings from recognized agencies.
  • Helps SC/ST businesses access better credit facilities and build stronger relationships with lenders.
• Eligibility: SC/ST MSMEs registered with the Ministry of MSME.

8. Procurement and Marketing Support (PMS) Scheme

• Objective: To increase market access and procurement opportunities for SC/ST entrepreneurs.
• Features:
  • Offers support for participation in domestic and international trade fairs, exhibitions, and buyer-seller meets.
  • Subsidies are provided for stall rentals, travel, and publicity to enhance market outreach.
• Eligibility: SC/ST-owned MSMEs looking to improve market access and expand their customer base.

9. Bank Credit Facilitation Scheme through NSIC

• Objective: To meet the credit requirements of SC/ST entrepreneurs through easy access to bank financing.
• Features:
  • NSIC (National Small Industries Corporation) facilitates loans by liaising with banks on behalf of SC/ST entrepreneurs.
  • Assists in obtaining the best possible loan terms and helps address documentation requirements.
• Eligibility: SC/ST-owned MSMEs registered with NSIC.

10. Capacity Building Programs under the National SC-ST Hub

• Objective: To provide SC/ST entrepreneurs with necessary skills and knowledge for business management and growth.
• Features:
  • Conducts workshops, seminars, and skill development programs on topics like digital marketing, export readiness, and business management.
  • Offers access to mentors and successful entrepreneurs for guidance and support.
• Eligibility: SC/ST entrepreneurs registered under the National SC-ST Hub or Udyam Registration.

Conclusion

These MSME schemes offer SC/ST entrepreneurs vital support across financing, market access, technology, and skill development. By availing of these schemes, SC/ST entrepreneurs can improve their business resilience, expand their market reach, and enhance their competitive edge, contributing to the overall growth of the MSME sector in India.