Credit Enhancement Guarantee Scheme For The Scheduled Castes
State: Central
Ministry: Ministry Of Social Justice and Empowerment
Department: null
Category: Business & Entrepreneurship, Banking,Financial Services and Insurance, Social welfare & Empowerment
Beneficiary Type: null

The scheme aims to promote entrepreneurship, financial inclusion, and employment generation among Scheduled Castes. Through this scheme, credit enhancement guarantees are provided to banks and financial institutions financing eligible Scheduled Caste entrepreneurs.

Benefits:
The scheme provides guarantee cover for Working Capital Loans, Term Loans, and Composite Term Loans extended to eligible Scheduled Caste entrepreneurs.
**Loan Amount****Guarantee Cover****Guarantee 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>

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

<br>

Application Process:
[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.

Documents Required:
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)