Emergency Credit Line Guarantee Scheme (ECLGS)
The Emergency Credit Line Guarantee Scheme (ECLGS) was unveiled as part of the Rs 20 lakh crore comprehensive package announced by Finance Ministry on 13/05/2020, to aid Micro, Small and Medium Enterprises (MSMEs) sector in view of the economic distress caused by the COVID-19 pandemic. The key highlights of the scheme are as follows
Name of the Facility |
Guaranteed Emergency Credit Line (GECL) |
Facility Type |
Fund Based- Working Capital Term Loan |
Eligibility |
|
Credit Limit |
Credit under GECL would be up to 20% of the borrower’s total outstanding credit up to Rs. 25 crores, excluding off-balance sheet and non-fund-based exposures, as on 29th February, 2020, subject to the borrower meeting all the eligibility criteria. The maximum is Rs. 5 cr. |
Interest Rate |
External benchmark linked rates +1% subject to a maximum of 9.25% per annum |
Government Guarantee |
The entire funding provided under GECL shall be provided with a 100% credit guarantee coverage by NCGTC under the Scheme. |
Repayment |
|
Validity of Scheme |
The scheme is valid till 31.10.2020 or till an amount of Rs 3,00,000 crore is sanctioned under the GECL Scheme by all banks/NBFCs (as notified by NCGTC), whichever is earlier. |
Processing fee/ Pre-payment penalty |
Nil |
Guarantee Fee payable to credit guarantee trust |
Nil |
NCGTC Guidelines |
Please visit ECLGS Website |
For further details on the GECL product, please contact your Branch.