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Business & Entrepreneurship; Banking,Financial Services and Insurance; Social welfare & Empowerment

Credit Enhancement Guarantee Scheme For The Scheduled Castes

a loan scheme by the Ministry of Social justice and Empowerment for Entrepreneurs of Scheduled Caste Category.

Authority

Central

Region

Central Government

Status

Verified 2026

Updated

March 2026

What you get

Who can apply

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.

Required Paperwork

  • Aadhaar Card
  • PAN Card
  • Income Certificate
  • Residence Proof (Domicile)

Common Questions

What types of sectors does the scheme cover?

The borrower engaged in Primary/Manufacturing/Service sector may be considered for financial assistance by MLIs.

I am a transgender, am I eligible for the course?

Yes, The scheme has no gender restrictions.

Which type of borrowers can be covered under the scheme?

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 engaged in the manufacturing and services sector are cover under the Scheme.

Whether Individual and Sole Proprietorship firms are eligible to for the coverage under the scheme?

Yes, an individual is covered in the scheme.

Whether One Person company firms are eilgible to for the coverage under the scheme?

Yes, Registered companies including One Person Companies are eligible to be covered under the scheme.

Whether the borrower can approach any bank to get the coverage in the scheme?

No, Only the banks who have signed the undertaking for the scheme to become a member of the scheme known as Member Lending Institution (MLI) are allowed to get benefits of the scheme for their borrowers. The list of MLIs along with their Nodal Officers for the scheme is available on the IFCI's website, i.e. ifciltd.com and also on portal of the scheme, i.e. https://ifcicegssc.in

Whether working capital laon is eligible to be covered under the scheme?

Yes. The term "Loan" shall cover Working Capital Loan, Term Loan/Composite Term loan granted to SC Enterprises by MLIs is covered under the scheme

What is the collateral security required to be given for the loan availed under the scheme?

No Collateral security is required for the loan availed in the scheme.

Whether third party guarantee is required for the loan availed under the scheme?

No, Third party Guarantee is not required for the loan availed in the scheme.

What is the maximum quantum of loan provided in the scheme?

There is no restriction on the quantum of loan that a bank can sanction in the scheme. However, guarantee cover under the scheme will be minimum for Rs.0.15 crore and maximum Rs.5.00 crore.

What are the kind of documentation required for the bank to become a MLI?

An undertaking needs to be signed by the Bank to become MLI.

What is the rate of interest that will be charged to the borrowers for loans covered under the scheme?

The rate of interest admissible on the loans covered under the scheme will be per the interest rate policy of the MLI and will be linked to base rate of the MLI subject to maximum interest rate charged by MLI will not be more than 3% over and above the base rate of the MLI.

What is the maximum tenure of the guarantee cover in the scheme?

The maximum tenure of the guarantee cover may be upto 7 years or loan repayment period whichever is earlier. However, initially the loan shall be guaranteed for 1 years and renewed at yearly intervals.