Community Enterprise Fund (CEF) is designed to deliver soft loans to entrepreneurs to satisfy their entrepreneurial needs with very small interest rates. It will help to enhance credit worthiness of the village entrepreneurs and also showcase the ability of the community institution led enterprise capital provisions to demonstrate disciplined credit behavior. This will also enhance bank’s confidence in the unorganized sector. It is a dedicated fund which cannot be diverted to other uses. Enterprise groups are also eligible for availing loan either singly or through the group mechanism against mutual guarantee, from the formal banking sector including the MUDRA loan.