Credit Enhancement Guarantee Scheme for Scheduled Castes
Credit Enhancement Guarantee Scheme for Scheduled Castes
“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 CEGSSC scheme was started with initial corpus of Rs. 200 crores.
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
Eligibility to avail the benefit of guarantee cover
Guarantee period
Maximum 7 years or repayment period whichever is earlier. However, initially the loan shall be guaranteed for 1 year and renewed at yearly intervals.
FeesPayable for guarantee cover
Member Lending Institutions (MLIs)/ Banks
Achievements
As on 31.1.2024, on cumulative basis, 66 entities promoted by SC entrepreneurs have been sanctioned guarantee cover of approx. Rs.72 crore against bank loan of approx. Rs. 109 crore across India. Through CEGSSC, approx. 4049 number of direct and indirect employments have been generated which includes direct employees, workers, suppliers, vendors, other support services etc.