To 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.
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
Guarantee Fee and obligation of IFCI on theGuarantee
- Cost 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 by
IFCI by debiting the NLA on 01st April every year on an annualised basis.
- Cost to MLIs:
- The Guarantee obligation shall cease to exist as soon as theunderlying loan is repaid or the Guarantee validity period has expired, whichever is earlier.
Amount of Guarantee
Tenure of Guarantee
Repeat Credit Enhancement
- 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.
- 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
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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