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Credit Facilities to Scheduled Castes / Scheduled Tribes

Credit Facilities to Scheduled Castes / Scheduled Tribes

There are several major centrally sponsored schemes under which credit is provided by banks and subsidy is received through Government Agencies. Under each of these, there is a significant reservation/relaxation for the members of the SC/ST communities.

Deendayal Antyodaya Yojana - National Rural Livelihoods Mission (DAY-NRLM)

DAY-NRLM (previously known as NRLM) was launched by the Ministry of Rural Development, Government of India by restructuring the erstwhile Swarnajayanti Gram Swarozgar Yojana, effective from April 1, 2013.

DAY-NRLM would ensure adequate coverage of vulnerable sections of the society such that 50% of these beneficiaries are SC/STs.

To access the details of the scheme, click here.

Deendayal Antyodaya Yojana - National Urban Livelihoods Mission (DAY-NULM)

The Ministry of Housing and Urban Affairs (MoHUA), Government of India, launched the DAY-NULM (previously known as NULM) by restructuring the erstwhile Swarna Jayanti Shahari Rozgar Yojana (SJSRY), effective from September 24, 2013.

Under DAY-NULM, advances should be extended to SCs/STs to the extent of their strength in the local population.

To access the details of the scheme, click here.

Differential Rate of Interest (DRI) Scheme

Under the DRI Scheme, banks provide finance up to Rs 15,000/- at a concessional rate of interest of 4 per cent per annum to the weaker sections of the community for engaging in productive and gainful activities. In order to ensure that persons belonging to SCs/STs also derive adequate benefit under the DRI Scheme, banks have been advised to grant eligible borrowers belonging to SCs/STs such advances to the extent of not less than 2/5th (40 percent) of total DRI advances.

Further, the eligibility criteria under DRI, viz. size of land holding should not exceed 1 acre of irrigated land and 2.5 acres of unirrigated land, are not applicable to SCs/STs. Members of SCs/STs satisfying the income criteria of the scheme can also avail of housing loan up to Rs 20,000/- per beneficiary over and above the individual loan of Rs 15,000/- available under the scheme.

Credit Enhancement Guarantee Scheme for Scheduled Castes (CEGSSC)

The CEGSSC was launched by Ministry of Social Justice & Empowerment on May 6, 2015 with the objective of promoting entrepreneurship amongst the Scheduled Castes (SCs), by providing credit enhancement guarantee to Member Lending Institutions (MLIs), which extend financial assistance to these entrepreneurs. IFCI Ltd. has been designated as the Nodal Agency under the scheme, to issue the guarantee cover in favour of MLIs for financing SC entrepreneurs.

Individual SC entrepreneurs/Registered Companies and Societies/Registered Partnership Firms/Sole Proprietorship firms having more than 51% shareholding and management control for the previous 6 months by SC entrepreneurs/ promoters/ members are eligible for guarantee from IFCI Ltd. against the loans extended by MLIs.

The amount of guarantee cover under CEGSSC ranges from a minimum of Rs 0.15 cr to a maximum of Rs 5.00 cr.

The tenure of guarantee is up to a maximum of 7 years or repayment period, whichever is earlier.

Source : RBI

Last Modified : 8/19/2022



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