Sixty-six entities promoted by Scheduled Caste (SC) entrepreneurs have been sanctioned guarantee cover of approx Rs 72 crore against bank loan of approximately Rs 109 crore, on a cumulative basis, across India as of January 31, 2024, the government said on Friday.

The Ministry of Social Justice and Empowerment, in a statement, said through Credit Enhancement Guarantee Scheme for Scheduled Castes (CEGSSC), approximately 4,049 number of direct and indirect employments have been generated which includes direct employees, workers, suppliers, vendors, other support services etc.

Under the scheme, the entities promoted by SC entrepreneurs can avail loans from banks or Member Lending Institutions (MLIs) starting from Rs15 lakh to more than Rs 5 crore.

For loans availed from Rs 15 lakhs to Rs 1 crore, 100% guarantee cover shall be available to Banks/MLIs while for the loans availed from Rs 1 crore to Rs 2 crore, 80% guarantee cover shall be available to Banks/MLIs.

Also, for the loans availed from Rs 2 crore to Rs 5 crore, 70% guarantee cover shall be available to Banks/MLIs, and for above Rs 5 crore, 60% guarantee cover shall be available to Banks/MLIs, upto maximum guarantee cover of Rs 5 crore.

In turn, MLIs/Banks can avail the guarantee under CEGSSC scheme.

The scheme comes with guarantee period of a maximum of 7 years or repayment period whichever is earlier. However, initially the loan shall be guaranteed for 1 year and renewed at yearly intervals.

An annual renewal fee shall be payable by Banks/MLIs ranging between 0.20% pa to 0.75% pa depending upon loan amount and at time of renewal.

For SC women and SC divyang entrepreneurs, the fees ranges from 0.10% pa to 0.50% pa, depending upon loan amount and at time of renewal.

CEGSSC was announced in the Union Budget of 2014-15 under the social sector initiatives of Ministry of Social Justice & Empowerment . The scheme was started with initial corpus of Rs 200 crores.

The objective of the Scheme is to promote entrepreneurship amongst the Scheduled Castes entrepreneurs by providing Credit Enhancement Guarantee to Member Lending Institutions who shall be providing financial assistance to SC entrepreneurs.

Under the Scheme, Individuals, Sole Proprietorship, Registered companies, Partnerships & Societies belonging to Scheduled Castes can avail the benefit of the scheme through MLIs for availing Term Loan/Composite Term Loan/ Working Capital facility.