Question: I want to know about Credit Enhancement Guarantee Scheme For The Scheduled Castes. What does it offer?

Answer: of the Borrower details and other mandatory fields.The applicant will fill Loan and Bank details and other mandatory fields.Save
and Upload the requested documents Submit the documentï»¿Documents RequiredDocumentary proofs of being SC will have to be
mandatorily submitted by the entrepreneurs/promoters/partners/society members/ sole proprietorship firms/individual SC Entrepreneur at
the time of submitting the proposals;Frequently Asked QuestionsWhat types of sectors does the scheme cover?The borrower engaged in
Primary/Manufacturing/Service sector may be considered for financial assistance by MLIs. I am a transgender, am I eligible for the
course?Yes, The scheme has no gender restrictions. Which type of borrowers can be covered under the scheme?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.Whether Individual and Sole Proprietorship firms are eligible to for the coverage under the
scheme?Yes, an individual is covered in the scheme.Whether One Person company firms are eilgible to for the coverage under the
scheme?Yes, Registered companies including One Person Companies are eligible to be covered under the scheme. Whether the borrower
can approach any bank to get the coverage in the scheme?No, Only the banks who have signed the undertaking for the scheme to
become a member of the scheme known as Member Lending Institution (MLI) are allowed to get benefits of the scheme for their
borrowers. The list of MLIs along with their Nodal Officers for the scheme is available on the IFCI's website, i.e. ifciltd.com and also on
portal of the scheme, i.e. https://ifcicegssc.inWhether working capital laon is eligible to be covered under the scheme?Yes. The term
â€œLoanâ€​ shall cover Working Capital Loan, Term Loan/Composite Term loan granted to SC Enterprises by MLIs is covered under
the schemeWhat is the collateral security required to be given for the loan availed under the scheme?No Collateral security is required
for the loan availed in the scheme. Whether third party guarantee is required for the loan availed under the scheme?No, Third party
Guarantee is not required for the loan availed in the scheme. What is the maximum quantum of loan provided in the scheme?There is no
restriction on the quantum of loan that a bank can sanction in the scheme. However, guarantee cover under the scheme will be minimum
for Rs.0.15 crore and maximum Rs.5.00 crore. What are the kind of documentation required for the bank to become a MLI?An
undertaking needs to be signed by the Bank to become MLI. What is the rate of interest that will be charged to the borrowers for loans
covered under the scheme?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.What is the maximum tenure of the guarantee cover in the scheme?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.Sources And ReferencesScheme GuidelinesAdditional GuidelinesOkWas this helpful?News and UpdatesNo
new news and updates availableShareYou need to before applying for
schemesCancelIt seems you have already initiated your application earlier.To
know more please visit CancelApply NowMinistry Of Social Justice and EmpowermentCredit Enhancement Guarantee
Scheme For The Scheduled CastesCompaniesEntrepreneurScheduled CasteSocietiesDetailsBenefitsEligibilityApplication
ProcessDocuments RequiredFrequently Asked QuestionsTo encourage and promote entrepreneurship among the Scheduled Castes who
are oriented towards innovations and growth technologies by supporting the Bank and Financial Institutions [designated as Members
Lending Institutions (MLIs) for the Scheme], in the form of Credit Enhancement Guarantee (minimum Rs.0.15 crore and maximum
Rs.5.00 crore) against Working Capital Loans, Term Loans or Composite Terms Loans granted by (Money Lending Institutions) MLIs to
SC entrepreneurs.ï»¿Objective of the SchemeThe scheme is an initiative that is implemented throughout the nation to enhance
entrepreneurship among the Scheduled Caste who are motivated for innovation and growth of the technologies.To promote the financial
inclusion of SC entrepreneurs and motivate them towards further growth of SC communities.To facilitate the economic development of
SC entrepreneurs.To develop direct and indirect employment generation for the SC population in India.ï»¿Sector covered under
SchemeThe borrower engaged in primary/ service/ manufacturing sector would be considered for financial assistance by MLIs.ï»¿Type
of BorrowerRegistered companies/ registered partnership firms having more than 51% shareholdings with Scheduled Caste promoters
for the past six months having management control of the SC entrepreneurs/ promoters.Society registered under the Society Act and
carrying business in accordance with the general policy of Bank/ FIs, having above 51% shareholdings with Scheduled Caste members at
least for six months having management control of the SC entrepreneurs/ promoters.Sole Proprietorship firms of SC entrepreneurs/
individual SC entrepreneurs.The Scheduled Caste promoters of companies are given preference ahead of the Registered partnership
firms and Registered Societies.The Scheduled Caste promoter/ partner/ members will not dilute his/ her/ their shareholding/ equity
during the currency of the loan.ï»¿Lock-in PeriodThe guarantee cover will have a lock-in period of 12 months from the date of last
disbursement. No claim made under the guarantee shall be entertained by IFCI if the account becomes NPA within the lock in period.
ï»¿LoanThe term â€˜Loanâ€™ shall cover Working Capital Loan, Term Loan / Composite Term Loan granted to SC Enterprises by
(Money Lending Institutions) MLIs. ï»¿Guarantee Fee and obligation of IFCI on theGuaranteeCost to GOI:An upfront fee @1.5% flat
(exclusive of applicable taxes) for initial set-up of thecorpus (the first such corpus announced being Rs.200 crore) for implementing the
Scheme shall be paid by GOI to IFCI. Thereafter, annual maintenance fees @ 0.50% p.a. (exclusive of applicable taxes), shall be levied
by IFCI on the aggregate Guarantee outstanding as on 31st March every year towards annual maintenance of the scheme, payable at the
end of each year during the currency of the Scheme. The upfront fee of 1.50% shall be debited to NLA as soon as the Scheme becomes
operational and the annual maintenance fees will be recovered byIFCI by debiting the NLA on 01st April every year on an annualised
basis. Cost to MLIs: Guarantee fee would be levied by IFCI (rates as per following table) on the guarantee cover provided for the First
Year and then annual renewal fees of the outstanding Guarantee commitment/obligation, towards renewal of the Guarantee to be paid by
MLIs at the beginning of each Financial Year, i.e. 01st April every year. In the event of non-payment of renewal fee by May 31st of that
year or any other specified date, the guarantee under the scheme shall not be available to the lending institution/MLI unless IFCI agrees
for the continuance of guarantee and the lending institutions/MLI pays penal interest on the renewal fee due and unpaid, with effect from
the subsequent June 01, at four percent over IFCI Bench Mark Rate, per annum, or at such rates specified by IFCI from time to time, for
the period of delay.The Guarantee obligation shall cease to exist as soon as theunderlying loan is repaid or the Guarantee validity period
has expired, whichever is earlier.ï»¿OkWas this helpful?ShareNews and UpdatesNo new news and updates availableÂ©2024Powered
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24303714Last Updated On : 28/03/2024 | v-2.1.1