CREDIT ENHANCEMENT GUARANTEE SCHEME FOR SCHEDULED CASTE ENTREPRENEURS (CEGSSC)
In a bid to promote entrepreneurship among the Scheduled Castes, the Dept. of Social Justice & Empowerment. Govt. of India has launched 'Credit Enhancement Guarantee Scheme for Scheduled Caste Entrepreneurs' on 6th May, 2015 for providing credit enhancement guarantee to banks for extending financial assistance to entrepreneurs belonging to Scheduled Castes.
The guarantee cover under the Scheme shall be ranging from Rs15 lakh to Rs.5 crores. The Govt. of India has appointed IFCL as the Nodal Agency for the Scheme who has been entrusted with the responsibility of managing the scheme.
Salient Features of the Scheme :
Eligible Borrowers :
The Scheme shall cover credit facilities extended by Member Lending Institution(s)/MLI(s) to a single eligible borrower as defined hereunder:
Small and Medium Enterprises, projects/units being set up, promoted and run by Scheduled castes in manufacturing and services sector ensuring asset creation out of the funds deployed in the unit, which are not covered under any State/Central Government Subsidy/Grant Scheme shall be considered.
Registered Companies and Societies having more than 75% shareholding by Scheduled Caste entrepreneurs/promoters/members with management control for the past 12 months.
Registered Partnership Firms having more than 75% shareholding with Scheduled Caste Partners for the past 12 months. None of the partners should be below the age of 18 years.
The Scheduled Caste promoter(s)/Partners/Society members shall not dilute their stake below 75% in the company/enterprise during the currency of the Loan by way of term loan or Composite Term Loan facilities on or after entering into an agreement with IFCL Ltd (IFCL), without any collateral security and\or third party guarantees and or are not under any restricted category, defined in the eligibility criteria, as detailed above or such amount as may be decided by IFCL from time to time.
(N.B- Individuals and proprietorship firms are not eligible under the scheme)
For further details regarding the scheme please visit www.cgtmse.in