EMI Payment

Emergency Credit Line Guarantee Scheme (ECLGS)

Providing support to MSME and Business Enterprises

Facility type

Working Capital Term Loan (WCTL)


The purpose is to provide the lifeline to Micro, Small and Medium Enterprises (MSMEs) under Atmanirbhar Bharat Abhiyan to help them to boost the economic distress being faced due to the COVID-19 pandemic.


Available up to 31st March, 2023


48 months including principal moratorium for first 12 months

Key Highlights:
  • No Processing fees
  • No Application fees
  • ROI up to 14% only
  • Tenure for 4 years with 12 months of principal moratorium
  • Minimum documentation
Required Docs:
  • Application Form
  • KYC
  • GECL specific loan document
  • GST registration, borrower’s declaration required in case business enterprises / MSMEs are not required to obtain GST registration
  • Undertaking / Declaration from borrower
    1. On turnover / outstanding loan amount as on Feb 29th, 2020
    2. Certifying that existing loan was taken for business purpose
    3. On GECL end use, GECL funds to be utilised for business purpose
  • Business Enterprises /MSMEs constituted as Proprietorship, Partnership, registered company, trusts, and Limited Liability Partnerships (LLPs), loan to individuals for business purpose shall be eligible under the Scheme.
  • Loans provided to individuals as business loans for their own businesses are covered under the Scheme
  • Borrower accounts should be less than or equal to 60 days past due as on 29.02.2020 in order to be eligible under the Scheme. i.e. All borrowers which have not been classified as SMA 2 or NPA by any of the Lenders as on 29.02.2020 will be eligible for the Scheme
  • 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 registration.


The GECL is a loan for which 100% guarantee would be provided by National Credit Guarantee Trustee Company (NCGTC) to Member Lending Institutions (MLIs), and which will be extended in the form of additional working capital term loan facility in case of Scheduled Commercial Banks (SCBs) and Financial Institutions (FIs), and additional term loan facility in case of Non-Banking Financial Companies (NBFCs), to eligible MSMEs/ Business Enterprises, individual borrowers in case of the original loan having been for own business and interested Pradhan Mantri Mudra Yojana (PMMY) borrowers. Credit under GECL would be up to 20% of the borrower’s total outstanding credit up to Rs. 50 crore, excluding off-balance sheet and non-fund based exposures, as on 29th February, 2020, i.e., additional credit shall be up to Rs.10 crore.

The Scheme would be applicable to all loans sanctioned under GECL during the period from May 23, 2020 to 31st March 2023, or till an amount of Rs. 5 lakh crore is sanctioned under GECL, whichever is earlier.

The tenor of loans provided under GECL shall be four years from the date of disbursement. No pre-payment penalty shall, however, be charged by the MLIs in case of early repayment.

No application fee or processing fee shall be charged

You are eligible if

  • You have total credit outstanding of Rs.50 Crore or less as on 29.02.2020
  • Your turnover for FY 2019-20 was up to Rs.250 Crore
  • You have a GST registration or were not required to obtain such GST registration

To know more click here