Details
Objective of the Scheme
- The 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.
Sector covered under Scheme
Type of Borrower
Lock-in Period
Loan
Guarantee Fee and obligation of IFCI on theGuarantee
1.Cost to GOI:
2. 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.
3. The Guarantee obligation shall cease to exist as soon as theunderlying loan is repaid or the Guarantee validity period has expired, whichever is earlier.
Eligibility
- Enterprises, projects/units being set up, promoted and run by Scheduled castes in primary, manufacturing and services sector ensuring asset creation out of the funds deployed in the unit, under any State/Central Government Subsidy/Grant Scheme shall be considered;
- Registered Companies and Societies/Registered Partnership Firms/Sole Proprietorship firms/Individual SC Entrepreneur 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 startup SC Entrepreneur.
- Individual SC Entrepreneur would be eligible for a guarantee cover of a loan amount of upto Rs. 1.00 crore.
- Documentary proofs of being SC will have to be mandatorily submitted by the entrepreneurs/promoters/partners/society members/sole proprietorship firms/individual SC Entrepreneurat the time of submitting the proposals
- 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.
- To be eligible for Guarantee Cover under the Scheme, the banks / FIs/ MLI‟s shall submit to IFCI a copy of the valid sanction letters/LoI issued to Scheduled Caste beneficiary/enterprise/company/firm/society/sole proprietorship firms/individuals. In order to save time, the information may also be submitted online on the web portal of CEGSSC. The indicative Appraisal Format and Due Diligence Module are provided in the Scheme as Annexure-III and Annexure-IV in the scheme guidelines respectively for facilitation. However, the MLIs who have already developed their own formats and modules are free to use their own appraisal formats/modules.
Application Process
Online
- Enter the details of the Enterprise details and other mandatory fields
- Enter the details 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 document
Documents Required
Documentary 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;
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