Guaranteed Emergency Credit Line (GECL) for Businesses including MSMEs.

The loan shall be in shape of additional Working Capital Term Loan facility. The facility shall be over and above MPBF.

To provide assistance in shape of Working Capital Term Loan (WCTL) to Businesses/MSMEs that have been badly hit due to COVID19 and need additional funding to meet operational liabilities built up, buy raw material and restart Business.

The scheme shall be backed by the Emergency Credit Line Guarantee Scheme (ECLGS) of National Credit Guarantee Trustee Company (NCGTC), irrespective of the fact that the earlier credit facility is covered under the existing NCGTC or CGTMSE Scheme or not.

The Scheme would be in force till 31.10.2020 or till the 3.00 Lakh crore earmarked by the Government for the said scheme stand exhausted. No loan under the scheme to be sanctioned without ECLGS of NCGTC.

  • N.B.: As per NCGTC  loans sanctioned under GECL during the period from the date of issue of these guidelines by NCGTC to 31.10.2020, or till an amount of Rs 3,00,000 crore is sanctioned under the GECL, whichever is earlier, shall be covered under Emergency Credit Line Guarantee Scheme (ECLGS)
  • The scheme is valid for existing borrowers of the Bank only.
  • All Business Enterprises /MSME borrower with combined outstanding loans across all Banks/ FIs of up to Rs. 25 crore as on 29.2.2020, and annual turnover of up to Rs. 100 crore for FY 2019-20 are eligible for the Scheme.
  • For the purpose of this Scheme, loans covered under Pradhan Mantri Mudra Yojana extended on or before 29.2.2020, and reported on the MUDRA portal. All eligibility conditions including the condition related to Days past due would also apply to PMMY loans.
  • Borrower accounts should be less than or equal to 60 days past due as on 29th February, 2020 in order to be eligible under the Scheme. As such all borrowers which have not been classified as SMA 2 or NPA by any of the MLIs as on 29th February, 2020 will be eligible for the Scheme. As such Non SMA, SMA 0, SMA 1 accounts only are eligible.
  • Business Enterprises / MSME borrower accounts which had NPA or SMA-2 status as on 29.2.2020 shall not be eligible under 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.
  • Loans provided to Business Enterprises / MSMEs constituted as Proprietorship, Partnership, registered company, trusts and Limited Liability Partnerships (LLPs) shall be eligible under the Scheme. For instance, any existing loan such as CV loan taken by an entity shall be covered but CV loan taken by promoter or director in personal capacity shall not be covered.
  • For loans having co-applicant, only those existing loans where entity is the primary co-applicant are covered under the Scheme for additional emergency funding.
  • Loans provided in individual capacity are not covered under the Scheme.

The amount of GECL funding to eligible borrowers would be up to 20% of their total outstanding loans up to Rs. 25 crore as on 29th February, 2020, subject to the borrower meeting all the eligibility criteria.
However, the amount of loan may be decided in consultation with the borrower as per his requirement.
As such the maximum permissible finance shall not exceed Rs. 5.00 Cr

  • N.B.: Total Outstanding Amount would comprise of the on-balance sheet exposure such as outstanding amount across WC loans, term loans and WCTL loans. Off- balance sheet and non-fund based exposures will be excluded.

The GECL facility shall be disbursed by credit to the primary Working Capital limit. In case the borrower is not availing Working Capital limit, then the facility shall be disbursed into the Current account that is maintained with the Bank.
The disbursement of loan shall be made in bullet or in tranches as per the request of the borrower.
The facility will be considered as an exposure on the borrower and guidelines stipulated under the RBI Prudential Norms.

Moratorium period of one year on the principal amount shall be provided to borrowers during which interest shall be payable as and when applied.

Repayable in 36 equated monthly instalments after initial moratorium period of 12 months from the date of first disbursement of the loan. 

RLLR +100 bps (Floating), subject to a maximum of 9.25 %.

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