Sarkari Yojana
Credit Enhancement Guarantee Scheme For The Scheduled Castes
About Credit Enhancement Guarantee Scheme For The Scheduled Castes
The Department of Social Justice and Empowerment, Ministry of Social Justice and Empowerment, Government of India, runs the “Credit Enhancement Guarantee Scheme for the Scheduled Castes (SCs) (CEGSSC)” to grow entrepreneurship among Scheduled Castes, back innovative and growth-oriented enterprises, widen financial inclusion, create jobs, and drive economic development through credit-enhancement guarantees. Under it, banks and financial institutions that lend to eligible SC entrepreneurs receive guarantee support, with IFCI Limited (Industrial Finance Corporation of India Limited) acting as the nodal agency. The Government of India has set up a ₹200 crore corpus fund to guarantee working capital loans, term loans, and composite term loans given to eligible SC entrepreneurs, aiming to widen access to finance, build wealth and jobs, encourage profitable ventures, and strengthen economic linkages across communities. It runs continuously, nationwide. > Objective:
1. To grow entrepreneurship among India’s Scheduled Caste population. 1. To encourage innovative, growth-driven entrepreneurship among Scheduled Castes. 1. To offer Credit Enhancement Guarantees to banks and financial institutions financing SC entrepreneurs. 1. To create wealth, jobs, and confidence within Scheduled Caste communities. 1. To advance financial inclusion and economic development for SC entrepreneurs. 1. To boost direct and indirect employment for SC communities.
Scheme Overview
Central Government
Ministry Of Social Justice and Empowerment
National Scheduled Castes Finance And Development Corporation (NSFDC)
18 Jul 2014
Scheme Details
Eligibility Requirements
To qualify for Credit Enhancement Guarantee Scheme For The Scheduled Castes, applicants must satisfy the following conditions:
The applicant must establish, promote, and run an…
The applicant must establish, promote, and run an enterprise, project, or unit in the primary, manufacturing, or service sector that creates assets.
The applicant must be a Scheduled Caste entrepreneur,…
The applicant must be a Scheduled Caste entrepreneur, company, partnership firm, society, sole proprietorship, or individual entrepreneur as defined under the scheme.
Scheduled Caste entrepreneurs, promoters, partners, or members must…
Scheduled Caste entrepreneurs, promoters, partners, or members must hold more than 51% ownership and management control.
This above-51% SC ownership and control must continue…
This above-51% SC ownership and control must continue throughout the loan's tenure.
The applicant must furnish documentary proof of Scheduled…
The applicant must furnish documentary proof of Scheduled Caste status.
The applicant may simultaneously be operating under any…
The applicant may simultaneously be operating under any other Central or State Government subsidy/grant scheme.
Scheduled Caste-promoted companies get preference over registered partnership…
Scheduled Caste-promoted companies get preference over registered partnership firms and registered societies.
Benefits Provided
Credit Enhancement Guarantee Scheme For The Scheduled Castes provides the following benefits to eligible applicants:
The scheme provides guarantee cover for Working Capital Loans, Term Loans, and Composite Term Loans extended to eligible Scheduled Caste entrepreneurs. Loan AmountGuarantee CoverGuarantee Obligation₹15,00,000/- to ₹1,00,00,000/-100% of the sanctioned facility100% of the amount in default, subject to maximum guarantee coverAbove ₹1,00,00,000/- to ₹2,00,00,000/-80% of the sanctioned facility80% of the amount in default, subject to maximum guarantee coverAbove ₹2,00,00,000/- to ₹5,00,00,000/-70% of the sanctioned facility70% of the amount in default, subject to the maximum guarantee coverAbove ₹5,00,00,000/-60% of the sanctioned facility60% of the amount in default, subject to the maximum guarantee cover> Additional Benefit Conditions:
Guarantee cover under the scheme tops out at…
Guarantee cover under the scheme tops out at ₹5,00,00,000/-.
Startup Scheduled Caste entrepreneurs also qualify for guarantee…
Startup Scheduled Caste entrepreneurs also qualify for guarantee coverage.
Individual Scheduled Caste entrepreneurs get guarantee cover for…
Individual Scheduled Caste entrepreneurs get guarantee cover for loans up to ₹1,00,00,000/-.
A repeat credit enhancement is possible once the…
A repeat credit enhancement is possible once the first facility is fully repaid and the track record is satisfactory.
For loans above ₹2,00,00,000/-, incubation support may be…
For loans above ₹2,00,00,000/-, incubation support may be arranged through existing departmental schemes. Mode of Disbursement:
Benefits take the form of Credit Enhancement Guarantees…
Benefits take the form of Credit Enhancement Guarantees that IFCI issues to Member Lending Institutions (MLIs).
MLIs then extend loans to eligible Scheduled Caste…
MLIs then extend loans to eligible Scheduled Caste entrepreneurs. Expected Time of Disbursement
The guarantee is issued once the Member Lending…
The guarantee is issued once the Member Lending Institution submits the sanction letter, proof of disbursement, and the guarantee fee, within 30 days of the first loan disbursement. Validity
Initially valid for 1 year
Initially valid for 1 year.
Renewable each year
Renewable each year.
The guarantee cover's maximum tenure is 7 years…
The guarantee cover's maximum tenure is 7 years or the loan's repayment period, whichever ends sooner.
Documents Required
Applicants should keep the following documents ready before starting the application:
Scheduled Caste Certificate/Proof of Scheduled Caste status
Scheduled Caste Certificate/Proof of Scheduled Caste status
Loan application form
Loan application form
Sanction Letter/Letter of Intent issued by the Member…
Sanction Letter/Letter of Intent issued by the Member Lending Institution
Proof of loan disbursement
Proof of loan disbursement
Guarantee fee payment details
Guarantee fee payment details
Compliance certificate
Compliance certificate
Registration certificate of the company/firm/society (as applicable)
Registration certificate of the company/firm/society (as applicable)
Shareholding pattern documents (as applicable)
Shareholding pattern documents (as applicable)
Memorandum and Articles of Association (for companies, as…
Memorandum and Articles of Association (for companies, as applicable)
Promoters' PAN card and identification proof (as applicable)
Promoters' PAN card and identification proof (as applicable)
Promoters' income tax returns for the past 3…
Promoters' income tax returns for the past 3 years (as applicable)
Annual reports and financial statements (as applicable)
Annual reports and financial statements (as applicable)
Land lease papers (as applicable)
Land lease papers (as applicable)
CA certificate for sources and utilisation of funds…
CA certificate for sources and utilisation of funds (as applicable)
Insurance documents (as applicable)
Insurance documents (as applicable)
2014-07-18
How to Apply
Offline Application
Applicants can apply for Credit Enhancement Guarantee Scheme For The Scheduled Castes through the offline application process outlined below.
Application Portal: Open Application Portal ↗
The applicant approaches a Member Lending Institution (MLI)…
The applicant approaches a Member Lending Institution (MLI) for financial assistance under the scheme; the MLI identifies suitable, eligible Scheduled Caste entrepreneurs/beneficiaries and extends loans to them.
The applicant submits the loan application and required…
The applicant submits the loan application and required documents to the MLI for appraisal and due diligence; the MLI evaluates the credit application using sound banking judgment and picks commercially viable proposals.
Once the loan is approved, the MLI issues…
Once the loan is approved, the MLI issues a valid Sanction Letter/Letter of Intent (LoI) to the Scheduled Caste beneficiary, enterprise, company, firm, society, sole proprietorship, or individual.
After agreeing in principle to extend the loan,…
After agreeing in principle to extend the loan, the MLI registers the application with IFCI Limited, submitting it via the CEGSSC web portal if applicable, which generates an acknowledgement/token number.
The MLI submits the required details to IFCI,…
The MLI submits the required details to IFCI, including the valid sanction letter/Letter of Intent issued to the beneficiary/enterprise/company/firm/society/sole proprietorship/individual.
The MLI disburses the sanctioned loan to the…
The MLI disburses the sanctioned loan to the eligible applicant, then, within 30 days of the first disbursement, submits the sanction letter, proof of disbursement, guarantee fee, and compliance certificate to IFCI.
Once IFCI verifies these documents and confirms the…
Once IFCI verifies these documents and confirms the scheme's conditions are met, it issues the Credit Enhancement Guarantee Cover to the MLI.
Guarantee cover is granted on a first-come-first-served basis,…
Guarantee cover is granted on a first-come-first-served basis, subject to funds being available under the scheme.
Objectives
**
Exclusions / Who Is Not Eligible
1. The credit facility is covered under any other guarantee scheme operated by the Deposit Insurance and Credit Guarantee Corporation, Reserve Bank of India, Small Industries Development Bank of India, Government, insurer, or any other person/association providing insurance, guarantee, or indemnity coverage.
1. The credit facility does not comply with any applicable law or directions/instructions issued by the Central Government or Reserve Bank of India.
1. The borrower has already availed another credit facility covered under specified guarantee schemes, and the previous guarantee has been invoked, but dues remain unpaid due to the borrower's default.
1. The credit facility has been sanctioned against collateral security and/or third-party guarantee.
1. The credit facility has been sanctioned with an interest rate exceeding 3% over the base rate of the lending institution.
1. The credit facility has not been fully disbursed by the Member Lending Institution.
Official Application & Website
Verify the latest eligibility, dates and instructions before applying.