a loan scheme by the Ministry of Social justice and Empowerment for Entrepreneurs of Scheduled Caste Category.
a loan scheme by the Ministry of Social justice and Empowerment for Entrepreneurs of Scheduled Caste Category.
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.
<br>
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:
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.
<br>
Step 1: Offline — 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: Offline — 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: Offline — 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: Offline — 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: Offline — 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: Offline — 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: Offline — 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: Offline — Step 8
The guarantee cover shall be provided on a first-come-first-serve basis, subject to availability of funds under the scheme. <br>
The objective of the Credit Enhancement Guarantee Scheme for the Scheduled Castes (SCs) (CEGSSC) is to promote entrepreneurship among Scheduled Caste communities by providing credit enhancement guarantees to banks and financial institutions for extending loans to eligible Scheduled Caste entrepreneurs. The scheme aims to encourage innovation, growth-oriented entrepreneurship, financial inclusion, employment generation, wealth creation, and economic development among Scheduled Castes. <br>
The scheme is implemented by IFCI Limited as the nodal agency. <br>
Registered Companies and Societies/Registered Partnership Firms/Sole Proprietorship firms/Individual SC Entrepreneurs having more than 51% shareholding by Scheduled Caste entrepreneurs/promoters/members with management control for the past 6 months engaged in the manufacturing and services sector are cover under the Scheme.
Scheduled Caste entrepreneurs, companies, partnership firms, societies, sole proprietorship firms, and individual entrepreneurs fulfilling the eligibility conditions can avail benefits under the scheme. <br>
The scheme provides Credit Enhancement Guarantee Cover for Working Capital Loans, Term Loans, and Composite Loans extended by Member Lending Institutions to eligible Scheduled Caste entrepreneurs. <br>
The maximum guarantee cover available under the scheme is ₹5,00,00,000/-. <br>
The guarantee cover ranges from 60% to 100% of the sanctioned facility, depending on the loan amount. <br>
The applicant should approach a Member Lending Institution (MLI) for obtaining a loan facility. The MLI processes the loan application and submits the proposal to IFCI for obtaining the Credit Enhancement Guarantee Cover. <br>
No. The applicant applies through the Member Lending Institution. The guarantee process is completed between the MLI and IFCI. <br>
The applicant needs documents such as Scheduled Caste Certificate/Proof of Scheduled Caste Status, loan application documents, sanction letter/Letter of Intent, and other documents required by the lending institution. <br>
An undertaking needs to be signed by the Bank to become MLI.
The rate of interest admissible on the loans covered under the scheme will be per the interest rate policy of the MLI and will be linked to base rate of the MLI subject to maximum interest rate charged by MLI will not be more than 3% over and above the base rate of the MLI.
The maximum tenure of the guarantee cover may be upto 7 years or loan repayment period whichever is earlier. However, initially the loan shall be guaranteed for 1 years and renewed at yearly intervals.
The guarantee cover remains valid for the agreed tenure of the term credit/composite credit, subject to payment of the annual renewal fee. <br>
Applications are accepted only on the official government portal.
Open Official WebsiteThe Union Territory of Lakshadweep has implemented the scheme “25% Capital Investment Subsidy” to provide financial assistance to local entrepreneurs for promoting Micro and small Enterprises in Lakshadweep.
The "40% subsidy on Hank Yarn, Dyes & Chemicals Scheme" is a Subsidy Scheme by the Dept. of Handlooms & Textiles, Govt. of Andhra Pradesh. The assistance will be in the form of Grant from the State Govt. The subsidy will be available only on purchases / procurements from NHDC & APCO.
The scheme aims to reduce financial stress for ST students pursuing foreign education by providing up to ₹1,50,000 subsidy on interest for 3 years.
The scheme aims to promote self-employment among scheduled tribe (ST) individuals by making business loans affordable. Under this scheme, ST beneficiaries availing loans for self-employment are provided a interest subsidy to reduce financial burden and encourage entrepreneurship.
The scheme aims to support Scheduled Tribe (ST) individuals in purchasing vehicles for self-employment purposes. Under this scheme, tribal beneficiaries availing bank loans for vehicle purchase with interest subsidy. This financial support helps reduce the repayment burden on tribal entrepreneurs.
"ARAVANAIPPU", a scheme by the Dept of Women and Child Development, Govt of Puducherry aims to improve the status of the girl child and provide nutritious food; financial assistance of ₹1200 is offered to lactating mothers. The girl child of the applicant should be born after 1-4-2005.