Emergency Credit Line Guarantee Scheme

In view of the economic distress caused by the COVID-19 pandemic, the Finance Ministry of India announced the Emergency Credit Line Guarantee Scheme (ECLGS) as a  part of the ₹ 20 lakh crore comprehensive package for existing Business Enterprises/MSMEs to build up their current assets for working capital requirement and/or to meet operational liabilities and restart their business.

• Name of the Facility - Guaranteed Emergency Credit Line (GECL)
• Facility Type - Term Loan

• For GECL 1 - All Business Enterprises / MSME borrower accounts with total credit outstanding (fund based only) across all lending institutions of upto Rs.50 crore as on February 29, 2020.
• For GECL 2- Borrowers in the 26 sectors identified by the Kamath Committee on Resolution Framework vide its report dated 04.09.2020 and the Healthcare sector whose total credit outstanding (fund based only) as on February 29, 2020 was above Rs.50 crore and not exceeding Rs.500 crore
• Off-balance sheet and non-fund-based exposures will be excluded.
• Loans provided to Business Enterprises / MSMEs constituted as Proprietorship, Partnership, registered company, trusts and Limited Liability Partnerships (LLPs) shall be eligible under the Scheme.
• The Scheme is valid for existing customers (as of 29^th Feb 2020) only.
• Borrower accounts should be less than or equal to 60 days past due for GECL 1 and 30 days past due for GECL 2 respectively as on February 29, 2020 in order to be eligible under the Scheme.
• Borrower accounts otherwise eligible under the scheme should not be an NPA as on the date of sanction / disbursement.
• Business Enterprises / MSME borrower must be GST registered in all cases where such registration is mandatory. This condition will not apply to Business Enterprises / MSMEs that are not required to obtain GST.