Emergency Credit Line Guarantee Scheme

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Emergency Credit Line Guarantee Scheme (ECLGS)

Facility Type: Working Capital Term Loan

Validity: Scheme is available up to Oct 31, 2020 or on reaching the threshold stipulated by the Government of India under Emergency Credit Line Guarantee Scheme (ECLGS).

Purpose: To augment the Business Enterprises/Micro, Small & Medium Enterprises (MSME) borrowers working capital needs, to meet operational liabilities and restart their businesses which have been impacted due to the COVID-19 crisis.

Tenure:48 months including principal moratorium for first 12 months.

Repayment:The principal shall be repaid in 36 installments after the Moratorium period is over. Interest to be paid on a monthly basis during the Moratorium

Interest Rate:Upto 14% p.a.

Key highlights:

a.) Borrowers with up to INR 25 crore outstanding as on Feb 29, 2020 and up to INR 100 crore annual turnover for FY 2020 will be eligible.

b.) Loans sanctioned under ECLGS would be up to 20% of the borrower’s total outstanding credit as on Feb 29, 2020.

c.) Loans provided to Business Enterprises/MSMEs constituted as Proprietorship, Partnership, registered company, trusts and Limited Liability Partnerships (LLPs) shall be eligible under the Scheme.

d.) Business Enterprises/MSME borrower must be Goods and Services Tax (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 registration.

e.) Borrower accounts which had NPA or SMA-2 status as on Feb 29, 2020 shall not be eligible under the scheme.

f.) No additional collateral requirement.

For detailed guidelines and FAQs on ECLGS, visit https://www.ncgtc.in/en/eclgs