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Importnat Key Points CEG Scheme

"CREDIT ENHANCEMENT GUARANTEE SCHEME"

For Bank Exams-Railways-SSC CGL-CS

Introduction:
The Union Ministry of Social Justice and Empowerment on 6th May, 2015 launched the Credit Enhancement Guarantee Scheme for Scheduled Castes. The scheme is being implemented by Industrial Finance Corporation of India (IFCI) Ltd.

The scheme would be acquainted as “Credit Enhancement Scheme” for durable infrastructure projects and would come into force from the date of this scheme’s authorization by the Competent Authority. The credit enhancement fund will be floated by a Non-Banking Financial Company (NBFC) with IIFLC holding an at least 26% stake, these people said, adding Life Insurance Corp. of India, or LIC, which was initially mooted to be the lead promoter, will hold up to a 15% stake. The Ministry also inaugurated the Commercial Motor Driving Training Program with self defense skill for 250 women organized by National Safai Karamcharis Finance and Development Corporation (NSKFDC).

Objectives:
  • To encourage entrepreneurship in the lower strata of the society resulting in job creation besides creating confidence in Scheduled Castes;
  • To provide Credit Enhancement Guarantee to Banks and Financial Institutions, who are providing financial assistance to SC Entrepreneurs?
  • To promote entrepreneurship among the scheduled castes who are oriented towards innovation and growth technologies for growth of SC communities;
  • To facilitate economic development of SC entrepreneurs;

Eligibility of this scheme:
The Small and Medium Enterprises promoted and run by Scheduled Caste entrepreneur, which are not covered under any other State/Central Government Subsidy/ Guarantee Schemes. Please refer Section-III Para 2 above for further details.
The promoters of the project must not be on the nonpayer’s list of Reserve Bank of India (RBI) or Credit Information Bureau (India) Limited (CIBIL) and no criminal proceeding has been pending against the promoters.
The minimum stand-alone credit rating of the infrastructure project / Proposed Bond structure to be credit enhanced should be at least BBB.

Features of this scheme:
  • Any other Term used in the scheme and not assigned specific meaning here would have the meaning as defined in SIFTI. Any term not defined either here or in SIFTI or any other additional term may be defined by IIFCL as and when such need arises by IIFCL and such term would have a meaning as assigned by solely by IIFCL. Further, IIFCL would have the sole right to assign meaning, clarification etc., as the case may be, in case of any contradiction in the meanings or any clauses in this scheme. Such meaning, clarification etc. as assigned by IIFCL would be final.
  • The promoters of the project should not be on the defaulters list of Reserve Bank of India (RBI) or Credit Information Bureau (India) Limited (CIBIL) and no criminal proceeding has been pending against the promoters.
  • Any criminal proceeding has been instituted against the borrower or the promoters of the project.
  • Modifications to this scheme may be made at the level of Board of Directors of IIFCL subject to the approval of the Department of Financial Services, Ministry of Finance, and Government of India.

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