Government allocates Rs 200 crore to IFCI to promote business among SCs

NEW DELHI: Government has allocated Rs 200 crore to IFCI Ltd to promote entrepreneurship among the people belonging to scheduled caste (SC), the term lender said today.

In a bid to promote entrepreneurship among the SCs, the government today launched "Credit Enhancement Guarantee Scheme (CEGS) for SCs for providing credit enhancement guarantee facility to banks extending financial assistance to young and start-up entrepreneurs, belonging to SC, who aspire to be part of neo middle class category," IFCI said in a statement.

Under the scheme, it will provide guarantee to public sector banks which in turn provide financial assistance to those entrepreneurs.

"The guarantee cover under the scheme shall be ranging from Rs 20 lakh to Rs 5 crore," said the release.

IFCI Ltd, a government undertaking, is the nodal agency for the scheme and has been entrusted with the responsibility of managing it.

The pan-India initiative will promote entrepreneurship amongst the SCs who are oriented toward innovation and growth technologies.

Minister for Social Justice & Empowerment, Thaawarchand Gehlot said the Credit Guarantee Scheme will go a long way in providing need based financial assistance to SC entrepreneurs, who will create wealth and value for society and at the same time shall promote profitable businesses.

He said the government will launch one Green Business Scheme aimed at providing loans up to Rs 1 lakh at concessional rate of interest of 3 per cent to SC individuals who wants to run e-rickshaw.

"The CEGS for SC shall further create chain effect in society as these initiatives will not only increase financial inclusion for SC entrepreneurs, motivate them for further growth of SC communities and develop SC entrepreneurs economically," said Malay Mukherjee CEO&MD of IFCI Ltd.

Mukherjee said it will also enhance direct and indirect employment generation for SC population in India.