Providing support to MSME and Business Enterprises
Facility type |
Working Capital Term Loan (WCTL) |
Purpose |
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. |
Validity |
Available up to 31st March, 2023 |
Tenure |
48 months including principal moratorium for first 12 months |
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