Credit Development Guarantee Scheme for Scheduled Tribes: Objectives, Eligibility, and Achievements

by time news

2024-02-02 16:27:23

“Credit Development Guarantee Scheme for Scheduled Tribes” was announced in Union Budget 2014-15 under Social Sector Initiatives of Union Ministry of Social Justice and Empowerment. The project was launched with an initial funding of Rs.200 crore.

The objective of the scheme is to encourage entrepreneurs belonging to Scheduled Classes by providing credit development guarantee to Lending Banks (MLIs) providing financing to Scheduled Class Entrepreneurs. IFCI is the co-ordinating agency implementing the scheme for guaranteeing MLIs, which are encouraged to provide financing to listed entrepreneurs. Under this scheme, term loan / joint term loan / working capital facility is also available through MLIs to individuals, sole proprietorship firms, registered firms, partnership firms and scheduled caste societies.

Warranty period

Maximum 7 years or repayment period whichever is earlier. However, initially the loan is guaranteed for 1 year. Updated at annual intervals.

Lending Institutions / Banks

State Bank of India, Mumbai

Bank of Baroda, Mumbai

Union Bank of India, Mumbai

Bank of Maharashtra, Pune

IDBI Bank, Mumbai

Punjab National Bank, New Delhi

Bank of India, Mumbai

Indian Bank, Chennai

Central Bank of India, Mumbai

Canara Bank, Bangalore

Punjab & Sind Bank, New Delhi

UCO Bank, Kolkata

Indian Overseas Bank, Chennai

Karnataka Bank, Mangalore

Dhanalakshmi Bank, Thrissur

Pallavan Grama Bank, Salem (now Tamil Nadu Grama Bank)

Sarva Harya Gramin Bank, Rohtak, Haryana

Achievements

As on 31.1.2024, on an aggregate basis, 66 enterprises promoted by Adi Dravidian entrepreneurs have been guaranteed bank loans of around Rs.72 crore for the financial year 2024-19. All India Rs. 109 crore has been provided. 4049 direct and indirect jobs have been created. This includes direct employees, laborers, distributors, vendors, other support services etc.

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