A credit enhancement guarantee scheme for the scheduled castes is Scheme in favor of the entrepreneurs who are willing to efficiently contribute to the Indian economy. Credit Enhancement Guarantee Scheme for the Scheduled Castes was stated on July 18, 2014, for which a sum of Rs. 200 crores was allocated. The Scheme supports young and start-up entrepreneurs who belong to scheduled castes. The budget of the Scheme is allocated under social sector initiatives to reach out to all the entrepreneurs among the scheduled castes who are supported by Banks and Financial Institutions in the form of the Credit Enhancement Guarantee Scheme.
The Department of Social Justice & Empowerment, under the supervision of the Ministry of Social Justice & Empowerment, Government of India, has launched the “Credit Enhancement Guarantee Scheme for Scheduled Castes” under the social sector initiative. This Scheme’s main objective is to promote entrepreneurship amongst the Scheduled Castes by providing Credit Enhancement Guarantee to Member Lending Institutions (MLIs). They shall be providing financial assistance to these entrepreneurs.
About Credit Enhancement Guarantee Scheme
The credit enhancement guarantee scheme is an excellent initiative for entrepreneurs of our Nation. Entrepreneurs are the leading roles in managing the businesses oriented towards innovations and growing technologies. The CEGS’s real spirit is to support the entrepreneurs who create value; wealth for society employs the needy and raises the people’s standard of living. Entrepreneurs play a significant role in contributing effectively to the economy of India.
The Government of India has initially allocated INR 200 crore for the Scheme and is contributing INR 0.01 crore annually, and Government may also contribute depending upon utilization of funds. Out of these funds, the guarantee cover is extended to the Member Lending Institutions. IFCI is designated as the Nodal Agency under the Scheme, to issue the guarantee cover in favor of Member Lending Institutions. They shall be encouraged to finance Scheduled Caste entrepreneurs to boost entrepreneurship amongst society’s marginal brackets.
Objectives of the Credit Enhancement Guarantee Scheme
- The CEGS aims at promoting entrepreneurship amongst the scheduled castes of India.
- The CEGS develops a sense of entrepreneurship among the scheduled castes oriented towards innovation and growth technologies.
- The CEGS financially assist the scheduled castes who, in turn, will create better job opportunities further.
- The Scheme creates forward/backward linkages that will further create a chain effect.
- The Scheme promotes financial inclusion for Scheduled castes entrepreneurs and to motivate them for future growth.
- The Scheme initiates and facilitates the economic development of scheduled castes entrepreneurs.
- The Scheme enhances employment generation for the scheduled caste population in India.
The overall objective of the Credit Enhancement Guarantee Scheme revolves around the social and economic development of the Scheduled caste entrepreneurs. The main aim of the CEGS is to bring the scheduled castes entrepreneurs at par with other competing entrepreneurs and do away with social disparity prevailing in the society.
Who can apply for the Credit Enhancement Guarantee Scheme
Eligibility criteria for availing benefits under the Scheme are as follows:
- Registered Companies and Societies.
- Registered partnership firm.
- Sole proprietorship firm.
- Any Scheduled caste entrepreneur has more than 51% shareholding by scheduled caste entrepreneurs.
- Promoters
- All the members with management control for the past six months are eligible for a guarantee from IFCI against the loans extended by MLI Banks.
Financial Assistance
The guarantee cover beneath the Scheme shall be range between Rs 15 lakh to Rs.5 crores. The Government of India has appointed IFCL as its Nodal Agency for the Scheme to manage the Scheme.
Tenure of Guarantee
The tenure of guarantee under the Credit Enhancement Guarantee Scheme is seven years or the repayment period whichever is earlier.
The Credit Enhancement Guarantee Scheme has successfully managed to provide means of livelihood to distorted scheduled caste entrepreneurs. The Scheme has successfully raised the bars by bridging the gap between the finances and scheduled caste entrepreneurs. Scheduled caste entrepreneurs are rising confidently, breaking all social barriers, and contributing to India’s economy. The Government of India has applied all means to enhance the ways of supporting scheduled caste entrepreneurs.
We, as an Aatmanirbhar Sena, are also contributing by being the strength of the government schemes. We are digging it right to provide round the clock assistance to budding entrepreneurs in availing the benefits of the Scheme in the best possible manner. We are at the forefront of delivering training and workshops to the budding entrepreneurs, along with other aid and assistance. We are trying to break through the social stigma and bring equal employment opportunities to every budding entrepreneur in the scheduled caste.
