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Emergency Credit Line Guarantee Scheme (ECLGS)

In order to aid MSMEs like you, who are significantly impacted due to the nation-wide lockdown in view of the COVID-19 pandemic, the Government of India has launched an Emergency Guarantee Scheme (ECLGS) to meet the additional term loan and working capital requirement.

Highlights of the Scheme

  • No face to face contact
  • Government Regulated Product
  • No Processing Fee
  • ROI upto 14% only
  • Minimum documents with easy & contactless signature/Collection
  • Tenure for 4 years with 12 months of principal moratorium
  • Loan upto 20% of principal outstanding as of feb 2020

NAME OF THE SCHEME

Emergency Credit Line Guarantee Scheme (ECLGS)' (hereinafter referred as the ‘Scheme’) and the credit product for which a guarantee would be provided under the Scheme shall be named as ‘Guaranteed Emergency Credit Line (GECL)'. The scheme has been introduced by the Gol through the economic stimulus package of INR 3 Lakh Crore announced by the Finance Minister Nirmala Sitharaman on 20" May 2020.

Purpose

The Scheme is a specific response to the unprecedented situation brought about by the widespread occurrence of the COVID-19 pandemic. It seeks to provide you with additional liquidity, thereby enabling MSMEs like you to meet your operational liabilities and restart your businesses.

Nature of Facility

Fund Based: Working Capital Term Loan

Eligibility

Any MSME/ Business Enterprise which has been constituted as Proprietorships, Partnerships, Registered Companies, Trusts and Limited Liability Partnerships (LLPs), as well as interested borrowers under PMMY, would be eligible to apply.

Eligibility Criteria

All Business Enterprises /MSME borrowers with combined outstanding loans across all Member Lending Institutions (MLIs) of up to Rs. 25 crores as on 29.2.2020, and an annual turnover of up to Rs. 100 crores for FY 2019-20 are eligible for the Scheme.

You would be eligible only if all your payments with all MLI are up to date or in case of a missed loan repayment, your loan account is less than or equal to 60 days past due as on 29th February 2020 in order to be eligible under the Scheme.

Quantum of Finance

You will be offered a credit line up to 20% of your total outstanding credit with us (UGRO Capital), as on 29th February 2020.

Tenure

The tenure of loans provided under this scheme shall be four years from the date of disbursement.

Security

Credit under the Scheme will rank second charge with the existing outstanding credit facilities in terms of cash flows (including repayments) and securities. The said second charge needs to be created within a period of 3 months from the date of disbursal

Moratorium

A moratorium period of one year on the principal amount will be provided to you under this scheme.

Interest shall, however, be payable during the moratorium period. The principal shall be repaid in 36 instalments after the moratorium period is over.

Scheme Validity

The Scheme would be applicable to all loans sanctioned under GECL during the period from 239 May 2020 to 31* October 2020, or till an amount of Rs. 3 lakh crore is sanctioned under GECL by all MLIs, whichever is earlier.