Credit Enhancement Guarantee Scheme for Scheduled Castes
Last updated: 2026-11-13 · MockMentor
The Credit Enhancement Guarantee Scheme for Scheduled Castes, launched in 2014-15, helps SC entrepreneurs get larger bank loans without collateral. The Government acts as guarantor, and IFCI Ltd manages the scheme.
In one line: a Government guarantee that makes banks willing to lend ₹15 lakh to ₹5 crore to SC-owned businesses.
At a glance
| Item | Details |
|---|---|
| Launched | 2014-15 |
| Ministry | Social Justice and Empowerment |
| Agency | IFCI Ltd |
| Loan size | ₹15 lakh to ₹5 crore |
| Eligible | Firms with at least 51% SC shareholding (for 6 months) and SC management control |
| Lenders | Scheduled commercial banks, RRBs, select NBFCs |
Guarantee cover
| Loan | Cover |
|---|---|
| ₹15 lakh to ₹1 crore | 100% |
| ₹1 crore to ₹2 crore | 80% |
| Above ₹2 crore to ₹5 crore | 70% |
There is a 12-month lock-in from the last disbursement before a claim. Women SC entrepreneurs and PM-DAKSH trainees get preference.
Possible exam questions
- How do credit guarantees help disadvantaged entrepreneurs? Compare this scheme with Stand-Up India.
- Why do SC entrepreneurs face higher barriers to formal credit?
Complete notes in our courses: this page gives the essentials. The Super-Elite and Elite courses carry the full chapter with every update merged in, plus practice MCQs. Compare the courses.
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