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.