{"id":43031,"date":"2022-05-06T16:33:31","date_gmt":"2022-05-06T11:03:31","guid":{"rendered":"https:\/\/corpbiz.io\/learning\/?p=43031"},"modified":"2022-05-06T16:33:32","modified_gmt":"2022-05-06T11:03:32","slug":"venture-capital-assistance-scheme","status":"publish","type":"post","link":"https:\/\/corpbiz.io\/learning\/venture-capital-assistance-scheme\/","title":{"rendered":"Venture Capital Assistance Scheme: Explained"},"content":{"rendered":"\n<p class=\"has-drop-cap\"><strong>The Venture Capital Assistance scheme is\nlaunched by the <\/strong>Small\nFarmer&#8217;s Agri-Business Consortium. The scheme works for the betterment of\nfarmer-entrepreneur to evolve their agri-based business. VCA also aims to\nprovide credit assistance to the qualifying projects of the farmers to fulfill\ntheir funding needs for the project&#8217;s implementation. In this write-up, we\nshall discuss the Venture Capital Assistance Scheme in detail.<\/p>\n\n\n\n<h3 class=\"wp-block-heading\">Underlying Objectives of the Venture Capital Assistance scheme<\/h3>\n\n\n\n<p>The key objectives of the VCA are listed\nbelow: <\/p>\n\n\n\n<ul><li>To\naid the entrepreneurs in establishing an agri-based venture which has already\nsecured the necessary bank&#8217;s approval.<\/li><li>To\naid farmers, agriculture graduates, and producer groups in taking part in the\nvalue chain via the Project Development Facility.<\/li><li>To\nimprove the preceding stages of central and state SFAC. <\/li><li>To\nadvocate training and approaches to agri-entrepreneurs for establishing\nagribusiness projects.<\/li><li>To\nfacilitate market access to the producers for augmenting rural income and job\nthreshold.<\/li><li>To\nassist the backward linkages with producers.<\/li><\/ul>\n\n\n\n<div id=\"ez-toc-container\" class=\"ez-toc-v2_0_82_2 counter-hierarchy ez-toc-counter ez-toc-grey ez-toc-container-direction\">\n<div class=\"ez-toc-title-container\">\n<p class=\"ez-toc-title ez-toc-toggle\" style=\"cursor:pointer\">Page Contents<\/p>\n<span class=\"ez-toc-title-toggle\"><a href=\"#\" class=\"ez-toc-pull-right ez-toc-btn ez-toc-btn-xs ez-toc-btn-default ez-toc-toggle\" aria-label=\"Toggle Table of Content\"><span class=\"ez-toc-js-icon-con\"><span class=\"\"><span class=\"eztoc-hide\" style=\"display:none;\">Toggle<\/span><span class=\"ez-toc-icon-toggle-span\"><svg style=\"fill: #999;color:#999\" xmlns=\"http:\/\/www.w3.org\/2000\/svg\" class=\"list-377408\" width=\"20px\" height=\"20px\" viewBox=\"0 0 24 24\" fill=\"none\"><path d=\"M6 6H4v2h2V6zm14 0H8v2h12V6zM4 11h2v2H4v-2zm16 0H8v2h12v-2zM4 16h2v2H4v-2zm16 0H8v2h12v-2z\" fill=\"currentColor\"><\/path><\/svg><svg style=\"fill: #999;color:#999\" class=\"arrow-unsorted-368013\" xmlns=\"http:\/\/www.w3.org\/2000\/svg\" width=\"10px\" height=\"10px\" viewBox=\"0 0 24 24\" version=\"1.2\" baseProfile=\"tiny\"><path d=\"M18.2 9.3l-6.2-6.3-6.2 6.3c-.2.2-.3.4-.3.7s.1.5.3.7c.2.2.4.3.7.3h11c.3 0 .5-.1.7-.3.2-.2.3-.5.3-.7s-.1-.5-.3-.7zM5.8 14.7l6.2 6.3 6.2-6.3c.2-.2.3-.5.3-.7s-.1-.5-.3-.7c-.2-.2-.4-.3-.7-.3h-11c-.3 0-.5.1-.7.3-.2.2-.3.5-.3.7s.1.5.3.7z\"\/><\/svg><\/span><\/span><\/span><\/a><\/span><\/div>\n<nav><ul class='ez-toc-list ez-toc-list-level-1 eztoc-toggle-hide-by-default' ><li class='ez-toc-page-1 ez-toc-heading-level-2'><a class=\"ez-toc-link ez-toc-heading-1\" href=\"https:\/\/corpbiz.io\/learning\/venture-capital-assistance-scheme\/#Salient_Features_of_the_Venture_Capital_Assistance_scheme\" >Salient Features of the Venture Capital Assistance scheme<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-2'><a class=\"ez-toc-link ez-toc-heading-2\" href=\"https:\/\/corpbiz.io\/learning\/venture-capital-assistance-scheme\/#Eligibility_Criteria_underpinned_by_the_Scheme\" >Eligibility Criteria underpinned by the Scheme<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-2'><a class=\"ez-toc-link ez-toc-heading-3\" href=\"https:\/\/corpbiz.io\/learning\/venture-capital-assistance-scheme\/#Loan_threshold_available_under_the_Venture_Capital_Assistance_scheme\" >Loan threshold available under the Venture Capital Assistance scheme<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-2'><a class=\"ez-toc-link ez-toc-heading-4\" href=\"https:\/\/corpbiz.io\/learning\/venture-capital-assistance-scheme\/#Terms_and_Conditions_of_the_VCA_scheme\" >Terms and Conditions of the VCA scheme<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-2'><a class=\"ez-toc-link ez-toc-heading-5\" href=\"https:\/\/corpbiz.io\/learning\/venture-capital-assistance-scheme\/#Documents_required_to_be_registered_under_the_Venture_Capital_Assistance_scheme\" >Documents required to be registered under the Venture Capital Assistance\nscheme<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-2'><a class=\"ez-toc-link ez-toc-heading-6\" href=\"https:\/\/corpbiz.io\/learning\/venture-capital-assistance-scheme\/#Application_Procedure_for_registering_under_the_VCA_scheme\" >Application Procedure for registering under the VCA scheme<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-2'><a class=\"ez-toc-link ez-toc-heading-7\" href=\"https:\/\/corpbiz.io\/learning\/venture-capital-assistance-scheme\/#Sanction_of_Loan\" >Sanction of Loan<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-2'><a class=\"ez-toc-link ez-toc-heading-8\" href=\"https:\/\/corpbiz.io\/learning\/venture-capital-assistance-scheme\/#Conclusion\" >Conclusion<\/a><\/li><\/ul><\/nav><\/div>\n<h2 class=\"wp-block-heading\"><span class=\"ez-toc-section\" id=\"Salient_Features_of_the_Venture_Capital_Assistance_scheme\"><\/span>Salient Features of the Venture Capital Assistance scheme<span class=\"ez-toc-section-end\"><\/span><\/h2>\n\n\n\n<p>The salient features of the VCA scheme\nare as follows:<\/p>\n\n\n\n<ul><li>The\nventure capital shall be available for the projects that already have the\nbank&#8217;s approval for the project funding. <\/li><li>The\nscheme mandates capital acquirers to repay the credit (venture capital) to the\nSFAC within the given timeline. <\/li><li>The\nventure capital shall be provided to agri-based projects in the form of soft\nloans. <\/li><\/ul>\n\n\n\n<h2 class=\"wp-block-heading\"><span class=\"ez-toc-section\" id=\"Eligibility_Criteria_underpinned_by_the_Scheme\"><\/span>Eligibility Criteria underpinned by the Scheme <span class=\"ez-toc-section-end\"><\/span><\/h2>\n\n\n\n<p>The followings are eligible to secure the\nloan from the SFAC<\/p>\n\n\n\n<ul><li>Individual<\/li><li>Producer group<\/li><li>Farmers<\/li><li><a href=\"https:\/\/corpbiz.io\/partnership-firm-registration\"><strong>Partnership company<\/strong><\/a><\/li><li>Self Help Groups<\/li><li>Agripreneuers<\/li><li>Company<\/li><li>Agri-export zones units<\/li><li>Agricultural graduates<\/li><\/ul>\n\n\n\n<h2 class=\"wp-block-heading\"><span class=\"ez-toc-section\" id=\"Loan_threshold_available_under_the_Venture_Capital_Assistance_scheme\"><\/span>Loan threshold available under the Venture Capital Assistance scheme<span class=\"ez-toc-section-end\"><\/span><\/h2>\n\n\n\n<p>The loan threshold shall vary in\naccordance with the project cost. The maximum and minimum loan threshold is\nmentioned below <\/p>\n\n\n\n<ul><li>The loan threshold shall be 26 percent of the promoter&#8217;s equity.<\/li><li>The maximum loan threshold provided shall be Rs.50 lakhs.<\/li><\/ul>\n\n\n\n<p>The loan threshold for projects proposed\nto become operational in the north-eastern regions is mentioned below: <\/p>\n\n\n\n<ul><li>The loan threshold shall be 40 percent of the promoter&#8217;s equity.<\/li><li>The maximum loan threshold granted shall be Rs.50 lakhs.<\/li><\/ul>\n\n\n\n<h2 class=\"wp-block-heading\"><span class=\"ez-toc-section\" id=\"Terms_and_Conditions_of_the_VCA_scheme\"><\/span>Terms and Conditions of the VCA scheme<span class=\"ez-toc-section-end\"><\/span><\/h2>\n\n\n\n<p>The credit seekers have to meet the\nfollowing conditions to secure loans under the scheme <\/p>\n\n\n\n<ul><li>The project should belong to the Agri sector or any sector relating to agriculture practices.<\/li><li>The project must ensure a guaranteed market for the producer or farmers.<\/li><li>The project must have banks or<strong> financial institutions <sup><a href=\"https:\/\/en.wikipedia.org\/wiki\/Financial_institution\"><strong>[1]<\/strong><\/a><\/sup> <\/strong>&#8216;approval for the grant of loan to the project.<\/li><li>The project should aim for farmers&#8217; encouragement and provide assistance in producing high-value crops to maximize farmers&#8217; income.<\/li><\/ul>\n\n\n\n<p><strong><em>High\nVenture Capital<\/em><\/strong><strong><em><\/em><\/strong><\/p>\n\n\n\n<p>The Executive Committee under SFAC has\nthe authority to validate the project for the venture capital&#8217;s recommendation\nprovided the given norms are met: <\/p>\n\n\n\n<ul><li>If\nthe overall project&#8217;s valuation is not more than ten crores rupees. <\/li><li>If\nthe projects are proposed to become operational in hilly states which have been\ndeclared as backward regions by the scheme like the planning commission\nbackward regions grant fund scheme.<\/li><li>If\nthe approval authority sanctions the provision for high venture capital to a\nmax. of three crores rupees. <\/li><\/ul>\n\n\n\n<h2 class=\"wp-block-heading\"><span class=\"ez-toc-section\" id=\"Documents_required_to_be_registered_under_the_Venture_Capital_Assistance_scheme\"><\/span>Documents required to be registered under the Venture Capital Assistance\nscheme<span class=\"ez-toc-section-end\"><\/span><\/h2>\n\n\n\n<p>The following are the documents that have\nto be attached with the application form: <\/p>\n\n\n\n<ul><li>Promoter&#8217;s\nrequest letter<\/li><li>Sanction\nletter of the approval authority<\/li><li>Banks&#8217;\napproved appraisal<\/li><li>Accounts&#8217;\ncurrent statement<\/li><li>partnership\ndeed (in case of partnership firm)<\/li><li>Equity\ncertificate <\/li><li>Farmer&#8217;s\nbackward linkage backed by the agreement<\/li><li>Promoter&#8217;s\nAffidavit confirming that VCA has not been accessed in the past <\/li><li>CA\ncertificate (in case of unsecured loans secured by the promoter)<\/li><li>Copy\nrelating to the current bank inspection report<\/li><li>Bank&#8217;s\nconfirmation confirming that they shall not furnish collateral security before\nsecuring the SFAC approval<\/li><li>Justification\nof margin on working capital <\/li><\/ul>\n\n\n\n<h2 class=\"wp-block-heading\"><span class=\"ez-toc-section\" id=\"Application_Procedure_for_registering_under_the_VCA_scheme\"><\/span>Application Procedure for registering under the VCA scheme<span class=\"ez-toc-section-end\"><\/span><\/h2>\n\n\n\n<p>The following online procedure would help\nsecure applicant registration under the VCA scheme: <\/p>\n\n\n\n<p><strong>Step 1:<\/strong> Visit the SFAC portal<\/p>\n\n\n\n<p><strong>Step 2:<\/strong> On the homepage, tap on the option called &#8220;<strong>Venture\nCapital Assistance Scheme (VCA)&#8221;<\/strong> followed by <strong>Online submission of\nventure capital assistance scheme Form<\/strong>&#8220;. <\/p>\n\n\n\n<p><strong>Step 4:<\/strong> On the subsequent window, tap on the link stating <strong>Apply\nfor New venture capital assistance scheme Application<\/strong>&#8220;<\/p>\n\n\n\n<p><strong>Step 5:<\/strong> Next, tap on the &#8220;<strong>Start Filing Application\nForm&#8221;<\/strong> tab. This will direct the portal to open the e-form. <\/p>\n\n\n\n<p><strong>Step 6:<\/strong> Include the following particulars in the e-form <\/p>\n\n\n\n<ul><li>Bank\ndetails<\/li><li>Name\nand Address of controlling office of the branch<\/li><li>Status\nof Accounts<\/li><li>Cost\nof projects<\/li><li>Name\nof the consultant<\/li><\/ul>\n\n\n\n<p><strong>Step 7:<\/strong> Next, upload the requested documentation<\/p>\n\n\n\n<p><strong>Step 8:<\/strong> Tap on the &#8220;Next&#8221; tab to complete the process.<\/p>\n\n\n\n<h2 class=\"wp-block-heading\"><span class=\"ez-toc-section\" id=\"Sanction_of_Loan\"><\/span>Sanction of Loan<span class=\"ez-toc-section-end\"><\/span><\/h2>\n\n\n\n<p>Upon application&#8217;s submission, the\nconcerned bank or financial institution conducts the inspection procedure and\naccordingly forwards the funding request to the SFAC if all conditions are met.\nThe SFAC shall process the loan amount for eligible projects. <\/p>\n\n\n\n<h2 class=\"wp-block-heading\"><span class=\"ez-toc-section\" id=\"Conclusion\"><\/span>Conclusion <span class=\"ez-toc-section-end\"><\/span><\/h2>\n\n\n\n<p><strong>The Venture Capital Assistance scheme is a promising <\/strong>farmer-entrepreneur upliftment scheme that provides necessary funding to the qualifying projects. GOI launched this scheme to bring innovative agri-based projects into action. <\/p>\n\n\n\n<p class=\"text-left\"><b>Read our Article<\/b>:<mark style=\"background: #fffd03 !important;\"><a href=\"https:\/\/corpbiz.io\/learning\/export-promotion-schemes-in-india\/\">Export Promotion Schemes in India: Explained\n<\/a><\/mark><\/p>\n","protected":false},"excerpt":{"rendered":"<p>The Venture Capital Assistance scheme is launched by the Small Farmer&#8217;s Agri-Business Consortium. The scheme works for the betterment of farmer-entrepreneur to evolve their agri-based business. VCA also aims to provide credit assistance to the qualifying projects of the farmers to fulfill their funding needs for the project&#8217;s implementation. In this write-up, we shall discuss [&hellip;]<\/p>\n","protected":false},"author":22,"featured_media":43035,"comment_status":"open","ping_status":"closed","sticky":false,"template":"","format":"standard","meta":[],"categories":[153],"tags":[2323],"acf":{"service_id":"220"},"authorName":"Pankaj Tyagi","authorImageUrl":"https:\/\/corpbiz.io\/learning\/wp-content\/uploads\/2022\/01\/MicrosoftTeams-image-42.jpg","authorDescription":"Pankaj has a diverse experience of writing research papers, blog, and articles during his college time. Earlier, he was working as a tax consultant in a financial firm, but his interest in writing drives him to pursue a career in the writing field.","postViews":5602,"readingTime":3,"_links":{"self":[{"href":"https:\/\/corpbiz.io\/learning\/wp-json\/wp\/v2\/posts\/43031"}],"collection":[{"href":"https:\/\/corpbiz.io\/learning\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/corpbiz.io\/learning\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/corpbiz.io\/learning\/wp-json\/wp\/v2\/users\/22"}],"replies":[{"embeddable":true,"href":"https:\/\/corpbiz.io\/learning\/wp-json\/wp\/v2\/comments?post=43031"}],"version-history":[{"count":11,"href":"https:\/\/corpbiz.io\/learning\/wp-json\/wp\/v2\/posts\/43031\/revisions"}],"predecessor-version":[{"id":43048,"href":"https:\/\/corpbiz.io\/learning\/wp-json\/wp\/v2\/posts\/43031\/revisions\/43048"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/corpbiz.io\/learning\/wp-json\/wp\/v2\/media\/43035"}],"wp:attachment":[{"href":"https:\/\/corpbiz.io\/learning\/wp-json\/wp\/v2\/media?parent=43031"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/corpbiz.io\/learning\/wp-json\/wp\/v2\/categories?post=43031"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/corpbiz.io\/learning\/wp-json\/wp\/v2\/tags?post=43031"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}