Guaranteed Emergency Credit Line (GECL) Facility Details
|1||Name||Emergency Credit Line Guarantee Scheme (ECLGS)’ (hereinafter referred as the ‘Scheme’) and the credit product for which guarantee would be provided under the Scheme shall be named as ‘Guaranteed Emergency Credit Line (GECL)’|
|2||Purpose||The Scheme is a specific response to the unprecedented situation COVID-19. It seeks to provide additional liquidity, thereby enabling MSMEs to meet their operational liabilities and restart their businesses.|
|3||Nature of Facility||Fund Based: Working Capital Term Loan|
|4||Eligible Borrower||MSMEs/ Business Enterprises which are constituted as Proprietorships, Partnerships, Registered Companies, Trusts and Limited Liability Partnerships (LLPs), and also interested borrowers under PMMY.|
|6||Quantum of Finance|
|7||Tenure||The tenor of loans provided under this scheme shall be four years from the date of disbursement.|
|8||Moratorium||A moratorium period of one year on the principal amount shall be provided 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.
|9||Margin||NIL for ECLGS.|
However, margin for the existing limits will continue as per the sanctioned terms.
|10||Scheme Validity||The Scheme would be applicable to all loans sanctioned under GECL during the period from May 23, 2020 to 31st October, 2020, or till an amount of Rs. 3 lakh crore is sanctioned under GECL by all MLIs, whichever is earlier.|
|11||Insurance||Comprehensive insurance of all the securities charged to the Bank should be taken with Bank clause.|
For more details click on https://bit.ly/GECLFAQs