Central GovernmentVerified

Credit Enhancement Guarantee Scheme For The Scheduled Castes

Ministry: Ministry Of Social Justice and Empowerment

The scheme aims to promote entrepreneurship, financial inclusion, and employment generation among Scheduled Castes. Through this scheme, credit enhancement guarantees are provided to banks and financial institutions financing eligible Scheduled Caste entrepreneurs.

Start date18 Jul 2014

Last verifiedToday

Official Source ↗

About This Scheme

The scheme "Credit Enhancement Guarantee Scheme for the Scheduled Castes (SCs) (CEGSSC)" by the Department of Social Justice and Empowerment, Ministry of Social Justice and Empowerment, Government of India, aims to promote entrepreneurship among Scheduled Castes, support innovation and growth-oriented enterprises, facilitate financial inclusion, generate employment, and encourage economic development through credit enhancement guarantees. Through this scheme, credit enhancement guarantee support is provided to banks and financial institutions that extend financial assistance to eligible Scheduled Caste entrepreneurs. The scheme is implemented by IFCI Limited (Industrial Finance Corporation of India Limited) as the nodal agency. Under the scheme, the Government of India has established a corpus fund of ₹200 crore to provide guarantees for working capital loans, term loans, and composite term loans extended to eligible Scheduled Caste entrepreneurs. The scheme seeks to improve access to finance, create wealth and employment opportunities, encourage profitable business ventures, and strengthen forward and backward economic linkages across communities. The scheme is operational across India on an ongoing basis. > Objective: 1. To promote entrepreneurship among the Scheduled Caste population across India. 1. To promote innovation and growth-oriented entrepreneurship among Scheduled Castes. 1. To provide Credit Enhancement Guarantees to banks and financial institutions financing SC entrepreneurs. 1. To create wealth, generate employment, and build confidence among Scheduled Castes. 1. To promote financial inclusion and economic development of SC entrepreneurs. 1. To enhance direct and indirect employment generation for SC communities.

Benefits

₹15.0 L · annual

The scheme provides guarantee cover for Working Capital Loans, Term Loans, and Composite Term Loans extended to eligible Scheduled Caste entrepreneurs.

Loan Amount	Guarantee Cover	Guarantee Obligation
₹15,00,000/- to ₹1,00,00,000/-	100% of the sanctioned facility	100% of the amount in default, subject to maximum guarantee cover
Above ₹1,00,00,000/- to ₹2,00,00,000/-	80% of the sanctioned facility	80% of the amount in default, subject to maximum guarantee cover
Above ₹2,00,00,000/- to ₹5,00,00,000/-	70% of the sanctioned facility	70% of the amount in default, subject to the maximum guarantee cover
Above ₹5,00,00,000/-	60% of the sanctioned facility	60% of the amount in default, subject to the maximum guarantee cover

Additional Benefit Conditions:

The maximum guarantee cover available under the scheme is ₹5,00,00,000/-.
Startup Scheduled Caste entrepreneurs are eligible for guarantee coverage.
Individual Scheduled Caste entrepreneurs are eligible for guarantee cover on loan amounts up to ₹1,00,00,000/-.
Repeat credit enhancement may be extended after successful liquidation of the first facility and a satisfactory track record.
Incubation facilities may be facilitated through existing departmental schemes for loans above ₹2,00,00,000/-.

Mode of Disbursement:

Benefits are provided in the form of Credit Enhancement Guarantees issued by IFCI to Member Lending Institutions (MLIs).
Loans are extended by Member Lending Institutions to eligible Scheduled Caste entrepreneurs.

Expected Time of Disbursement

The guarantee is issued after submission of the sanction letter, proof of disbursement, and the guarantee fee by the Member Lending Institution within 30 days of the first loan disbursement.

Validity

Initially valid for 1 year.
Renewable annually.
The maximum tenure of guarantee cover is 7 years or the repayment period, whichever is earlier.

Eligibility

Note: You may be eligible based on the information shown. Please verify the official eligibility requirements before applying.

Required Documents

✦
Scheduled Caste Certificate / Proof Of Scheduled Caste Status
✦
Loan Application Form
✦
Sanction Letter / Letter Of Intent Issued By Member Lending Institution
✦
Proof Of Loan Disbursement
✦
Guarantee Fee Payment Details
✦
Compliance Certificate
✦
Registration Certificate Of Company / Firm / Society (As Applicable)
✦
Shareholding Pattern Documents (As Applicable)
✦
Memorandum Of Association And Articles Of Association (For Companies, As Applicable)
✦
Promoters’ PAN Card And Identification Proof (As Applicable)
✦
Income Tax Returns Of Promoters For The Past 3 Years (As Applicable)
✦
Annual Reports And Financial Statements (As Applicable)
✦
Land Lease Papers (As Applicable)
✦
CA Certificate For Sources And Utilisation Of Funds (As Applicable)
✦
Insurance Documents (As Applicable)

✦ Required ◦ Optional

How to Apply

IIn-person

Step 1: The applicant should approach a Member Lending Institution (MLI) for obtaining financial assistance under the scheme. The MLI shall identify and provide financial assistance/loans to suitable and eligible Scheduled Caste entrepreneurs/beneficiaries.

Step 2: The applicant should submit the loan application and required documents to the MLI for appraisal and due diligence. The MLI shall evaluate the credit application using prudent banking judgment and select commercially viable proposals.

Step 3: After approval of the loan, the MLI shall issue a valid Sanction Letter/Letter of Intent (LoI) to the Scheduled Caste beneficiary, enterprise, company, firm, society, sole proprietorship firm, or individual.

Step 4: The MLI shall register the loan application with IFCI Limited after agreeing in principle to extend the loan to the Scheduled Caste beneficiary. The MLI may submit the application through the CEGSSC web portal, after which an acknowledgement/token number will be generated.

Step 5: The MLI shall submit the required details to IFCI, including the valid sanction letter/Letter of Intent issued to the beneficiary/enterprise/company/firm/society/sole proprietorship firm/individual.

Step 6: The MLI shall disburse the sanctioned loan amount to the eligible applicant. Within 30 days of the first disbursement, the MLI shall submit the sanction letter, proof of disbursement, guarantee fee, and compliance certificate to IFCI.

Step 7: After verification of the submitted documents and fulfilment of scheme conditions, IFCI shall issue the Credit Enhancement Guarantee Cover to the MLI.

Step 8: The guarantee cover shall be provided on a first-come-first-serve basis, subject to availability of funds under the scheme.

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Quick Info

Level: Central Government
Max benefit: ₹15.0 L
Launched: 18 Jul 2014