“Credit Enhancement Guarantee Scheme for Scheduled Castes” (CEGSSC) was announced in the Union Budget of 2014-15 under the social sector initiatives of Ministry of Social Justice & Empowerment (MoSJE), Government of India (GoI). The objective of the Scheme is to promote entrepreneurship amongst the Scheduled Castes entrepreneurs by providing Credit Enhancement Guarantee to Member Lending Institutions (MLIs) who shall be providing financial assistance to SC entrepreneurs. IFCI Ltd is the Nodal Agency for implementation of the Scheme for issuing the guarantee to the MLIs, who are encouraged to finance Scheduled Caste entrepreneurs. Under the Scheme, Individuals, Sole Proprietorship, Registered companies, Partnerships & Societies belonging to Scheduled Castes can avail the benefit of the scheme through MLIs for availing Term Loan/Composite Term Loan/ Working Capital facility.
Salient Features of the scheme
- Entities promoted by SC entrepreneurs can avail loans from banks/MLIs starting from Rs.15 lakhs to more than Rs.5 crore.
- Banks/MLIs can avail guarantee under CEGSSC scheme upto a maximum of Rs.5 crore.
- For loans availed from Rs.15 lakhs to Rs. 1 crore, 100% guarantee cover shall be available to Banks/MLIs.
- For loans availed from Rs.1 crore to Rs. 2 crore, 80% guarantee cover shall be available to Banks/MLIs.
- For loans availed from Rs.2 crore to Rs. 5 crore, 70% guarantee cover shall be available to Banks/MLIs.
- For loans availed above Rs. 5 crore, 60% guarantee cover shall be available to Banks/MLIs, upto maximum guarantee cover of Rs. 5 crore.
- SC entrepreneurs or entities promoted by them have to approach a branch of MLIs/Banks in their area for availing loans. In turn, MLIs/Banks can avail the guarantee under CEGSSC scheme.