Emergency Credit Line Guarantee Scheme (ECLGS)

In view of the economic distress caused by the COVID-19 pandemic, the Finance Ministry unveiled a Rs. 20 Lakh Crore comprehensive package, known as the Emergency Credit Line Guarantee Scheme (ECLGS). This package is in aid of Micro, Small and Medium Enterprises (MSMEs) sector, addressing working capital needs, operational liabilities and restart business impacted due the COVID-19 crisis.

This scheme is available on reaching the threshold stipulated by the Government of India under the Emergency Credit Line Guarantee Scheme (ECLGS). The working capital term loan (WCTL) comes with a tenure of 48 months, with a principal moratorium for the first 12 months.

Key Highlights of the Emergency Credit Line Guarantee Scheme:

• Eligibility of applicants

Borrowers with up to Rs. 25 Crore outstanding as on Feb 29, 2020 and up to Rs. 100 Crore annual turnover for FY 2020 areeligible for this scheme.Business Enterprises, MSMEs constituted as Proprietorship, Partnership, registered company, trusts and Limited Liability Partnerships (LLPs) shall also be eligible.Borrower accounts which had NPA or SMA-2 status as on Feb 29, 2020 shall not be eligible under the scheme.

• Loan sanctioning

20% of the total outstanding credit of borrowers can be sanctioned as a loan under the Guaranteed Emergency Credit Line (GECL), for those who having a loan as on Feb 29, 2020.

• No processing charges or collateral required

Processing charges, foreclosure and prepayment charges will be waived. No collateral is required for this scheme.

For detailed guidelines, click here

More details, you may visit NCGTC site at www.ncgtc.in

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