Emergency Credit Line Guarantee Scheme

We are registered with the National Credit Guarantee Trustee Company Limited (“NCGTC”) as a Member Lending Institution under Emergency Credit Line Guarantee Scheme (“ECLGS”) announced by the Government of India on May 23, 2020 as part of the Atma Nirbhar Bharat initiative to support businesses impacted by the COVID-19 pandemic. The ECLGS aims to provide a financial lifeline to MSMEs by offering a 100% guarantee on additional funding to assist them in covering operational costs and recovering from economic distress.

Through this scheme, we are positioned to extend guaranteed emergency credit lines to eligible MSME borrowers. The ECLGS offers loans with attractive interest rate caps and a one or two year moratorium on principal repayments based on the tenor of the loan, thus facilitating easier repayment terms. By leveraging this scheme, we are committed to supporting our customers in overcoming the financial challenges posed by the pandemic, thereby contributing to the revival of the MSME sector and the broader economy.

Salient Features of the Scheme

Loan Facility
  • Additional term loan facility for eligible businesses up to 30% of outstanding as on Feb 2020/March 2021 across all existing lenders
Eligibility Criteria
  • Annual business turnover as of Mar’ 2020 < 100 Cr
  • Total loan outstanding across all lenders as of Feb’2020 <50 Cr
  • Not more than 60 days past due as on Feb 2020/March 2021 across all MLIs.
  • Borrower should not be NPA on the date of sanction/disbursement.1
Duration of Scheme
  • Scheme is operational till 31st March 2023 or till the government corpus is sanctioned.
Tenor
  • 4 Years/ 5 Years (Basis the Outstanding Eligibility Checks)
Moratorium
  • 1 year Moratorium on principal for loans which are sanctioned with 4 years of total tenor
  • 2 year Moratorium on principal for loans which are sanctioned with 5 years of total tenor
Repayment
  • First 12 months- Interest Only EMI for loans which are sanctioned with 4 years of total tenor
  • First 24 months- Interest Only EMI for loans which are sanctioned with 5 years of total tenor
  • Remaining 36 Months- Interest + Principal EMI
Security
  • The facility granted under the scheme shall rank second charge with the existing credit facilities in terms of cash flows (including repayments) and security, with charge on the assets financed under the Scheme to be created within stipulated time
Rate of Interest
  • 14% P.A.
Additional Charges
  • No Processing Fee
  • No Prepayment Penalty
Guarantee
  • The facility is backed by 100% guarantee from Government of India through National Credit Guarantee Trust Company (NCGTC)

Note : Guidelines are subject to change from time to time as per the latest Scheme guidelines.