savings business
Emergency Credit Line

Emergency Credit Line Guarantee Scheme (ECLGS)

Purpose: To augment the Business Enterprises/Micro, Small and 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.

Validity: The scheme has now been extended up to Mar 31, 2022 or on reaching the guarantee of INR 4.5 lakh crore by the Government of India, under the Emergency Credit Line Guarantee Scheme (ECLGS). The last date of disbursement has been extended up to Jun 30, 2022.

Eligibility:

Under ECLGS 1.0 Extension, the borrowers meeting the eligibility criteria as defined by the guidelines, can be provided with assistance of up to 30% of the total outstanding credit (fund based only and excluding the availed ECLGS limit) as on Feb 29, 2020 or Mar 31, 2021, whichever is higher

Under ECLGS 2.0 Extension, the borrowers from 26 identified sectors based on the Kamath Committee and the Healthcare Sector, meeting the eligibility criteria, as defined by the guidelines, can be provided with assistance of up to 30% of the total outstanding credit (fund based only and excluding the availed ECLGS limit) as on Feb 29, 2020 or Mar 31, 2021, whichever is higher

Under ECLGS 3.0 Extension, the eligible borrowers who meet the eligibility criteria as defined in the guidelines and falling under stressed sectors like Hospitality, Travel & Tourism and the Leisure & Sporting sector, Civil Aviation etc. can be provided with assistance of up to 40% of their total outstanding limit (fund based only and excluding the availed ECLGS limit) as on Feb 29, 2020 or Mar 31, 2021, whichever is higher. The maximum assistance is capped at INR 200 crore

Under ECLGS 4.0, a maximum of up to INR 2 crore can be granted to existing Hospitals/Nursing homes/Clinics/Medical colleges/units engaged in the manufacturing of liquid oxygen, oxygen cylinders etc. for the setting up of on-site oxygen producing plants, and they should not be Non-Performing Assets (NPA), as on Mar 31, 2021.

Key highlights:

• Loans provided to Business Enterprises/MSMEs constituted as Proprietorship, Partnership, registered company, trusts and Limited Liability Partnerships (LLPs) shall be eligible under the respective scheme, falling under specific sectors

• Business Enterprises/MSME borrowers must have 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

• Borrower accounts, which had NPA or SMA-2 status as on Feb 29, 2020, shall not be eligible under the ECLGS 1.0/2.0 and 3.0 scheme

• The moratorium period for ECLGS 1.0 extension, ECLGS 2.0 extension and ECLGS 3.0 Extension is 2 years. The moratorium period for ECLGS 4.0 is 6 months.

• Nil processing charges and waiver of foreclosure/prepayment charges

• No additional collateral requirement.

For detailed guidelines and FAQs on ECLGS, visit ECLGS.

Terms and Conditions apply.

Scroll to top

arrow