Credit Enhancement Guarantee Scheme For the Scheduled Castes

The Credit Enhancement Guarantee Scheme for Scheduled Castes is a Government of India initiative designed to improve access to institutional credit for enterprises promoted by Scheduled Castes. Under this scheme, a credit guarantee cover is provided to lending institutions, encouraging them to extend loans to eligible SC entrepreneurs who may otherwise face challenges due to lack of collateral or credit history. The scheme is implemented by IFCI Ltd. on behalf of the Ministry of Social Justice and Empowerment.

The key objectives of the Credit Enhancement Guarantee Scheme for SC include:

• Promoting entrepreneurship among Scheduled Castes

• Enhancing access to formal credit through banks and financial institutions

• Reducing lender risk by providing a government-backed guarantee

• Supporting inclusive economic growth and employment generation

• Encouraging credit flow to underrepresented business segments

Some of the notable features and benefits of the scheme are:

• Government-backed credit guarantee cover for eligible loans

• Coverage of ₹15 Lakh to ₹5 Crore for organisations

• Coverage of up to ₹1 crore for individual SC entrepreneurs

• Tenure of guarantee of up to 7 years

• Improved loan approval prospects for SC-promoted enterprises

• Lower dependence on collateral security

• Coverage for both new and existing enterprises

• Encourages banks and NBFCs to lend to SC borrowers

To be eligible under the scheme, applicants must meet the following criteria:

• Enterprise must be promoted and majority-owned by Scheduled Castes

• Borrower should be an Indian citizen belonging to SC category

• Loan must be availed from eligible Member Lending Institutions (MLIs)

• The borrowing entity should be a viable business undertaking

• Compliance with RBI and lending institution norms is required

Applicants are generally required to submit:

• Proof of Scheduled Caste category

• Identity and address proof of promoters

• Business registration documents

• Project report or business plan

• Financial statements, if applicable

• Loan sanction letter from the lending institution

The application process typically involves the following steps:

1. Visit the official website of CEGSSC at https://www.ifcicegssc.in/#No-back

2. On the home page, scroll down and click on the ‘Application Form’ option

3. Fill in the details in the designated fields

4. Once all the mandatory fields across ‘Borrower Detail’, ‘Enterprise Details’, ‘Loan Amount & Terms’, and ‘Bank Details’ are filled in, click on the ‘Submit’ button

The Credit Enhancement Guarantee Scheme for Scheduled Castes plays a critical role in bridging the credit access gap for SC entrepreneurs by reducing lender risk and encouraging inclusive lending. If you are planning to start or expand a business and meet the eligibility criteria, exploring government-backed schemes alongside options to apply for a business loan can help you secure timely funding and support long-term growth.