Credit Enhancement Guarantee Scheme For The Scheduled Castes

Introduction: Credit Enhancement Guarantee Scheme for the Scheduled Castes, implemented by the Ministry of Social Justice and Empowerment to promote entrepreneurship among the Scheduled Castes.

Ministry/Agency: Ministry of Social Justice and Empowerment.


  • To enhance entrepreneurship among the Scheduled Castes 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.


  • 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 Members Lending Institutions (MLIs) to SC entrepreneurs.
  • A guarantee cover of a loan amount of up to Rs.1.00 crore for individual SC entrepreneurs.
  • Tenure of guarantee for a maximum of 7 years or repayment period, whichever is earlier.
  • Repeat credit enhancement in case of a satisfactory track record.


  • Enterprises, projects/units being set up, promoted and run by Scheduled Castes in primary, manufacturing and services sector ensuring asset creation.
  • 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.
  • Credit guarantee would be extended to start-up SC entrepreneur.
  • Documentary proofs of being SC are mandatory.
  • The Scheduled Caste promoter(s)/partners/society members shall not dilute their stake below 51% in the company/enterprise during the currency of the Loan.

Implementation Strategy:

  • Credit Enhancement Guarantee Scheme (CEGSSC) would be implemented through IFCI Limited.
  • Upfront fee @1.5% flat (exclusive of applicable taxes) for initial set-up of the corpus for implementing the scheme shall be paid by GOI to IFCI.
  • 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.
  • MLIs would pay a guarantee fee to IFCI on the guarantee cover provided for the First Year and then annual renewal fees of the outstanding Guarantee commitment/obligation.

Related Posts

Notify of
Inline Feedbacks
View all comments
Home Courses Plans Account