Credit Enhancement Guarantee Scheme For The Scheduled Castes

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.

1. The applicant should establish, promote, and operate an enterprise, project, or unit in the primary, manufacturing, or service sector resulting in asset creation.
2. The applicant should be a Scheduled Caste entrepreneur, company, partnership firm, society, sole proprietorship firm, or individual entrepreneur as specified under the scheme.
3. The applicant should have more than 51% ownership and management control held by Scheduled Caste entrepreneurs, promoters, partners, or members.
4. The applicant should maintain Scheduled Caste ownership and control above 51% throughout the currency of the loan.
5. The applicant should provide documentary proof of Scheduled Caste status.
6. The applicant may operate under any Central Government or State Government subsidy or grant scheme.
7. Preference is given to Scheduled Caste-promoted companies over registered partnership firms and registered societies.

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.
2. The credit facility does not comply with any applicable law or directions/instructions issued by the Central Government or Reserve Bank of India.
3. 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.
4. The credit facility has been sanctioned against collateral security and/or third-party guarantee.
5. The credit facility has been sanctioned with an interest rate exceeding 3% over the base rate of the lending institution.
6. The credit facility has not been fully disbursed by the Member Lending Institution.

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: 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.

• 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)

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.
2. To promote innovation and growth-oriented entrepreneurship among Scheduled Castes.
3. To provide Credit Enhancement Guarantees to banks and financial institutions financing SC entrepreneurs.
4. To create wealth, generate employment, and build confidence among Scheduled Castes.
5. To promote financial inclusion and economic development of SC entrepreneurs.
6. To enhance direct and indirect employment generation for SC communities.