Emergency Credit Line Guarantee Scheme: Rs 1 lakh cr disbursed under ECLGS - Check state wise details of loans

Modi government-led Ministry of Finance has confirmed that under the 100% Emergency Credit Line Guarantee Scheme (ECLGS) backed by a Government of India guarantee, Banks from Public and Private Sectors have sanctioned loans worth over Rs. 1.5 lakh crore as of 18th August, 2020, of which more than Rs 1 lakh crore has already been disbursed.

The ECLGS was announced by the Government as a part of Aatma Nirbhar Bharat Package, to mitigate the distress caused by lockdown due to COVID-19 by providing credit to different sectors, especially MSMEs.

State wise details of loans sanctioned and disbursed under ECLGS by PSBs are as follows:

Emergency Credit Line Guarantee Scheme (ECLGS): The salient features of the Scheme include -

-All MSME borrower accounts with outstanding credit of up to Rs. 25 crore as on 29.2.2020 which were less than or equal to 60 days past due as on that date, i.e., regular, SMA 0 and SMA 1 accounts, and with an annual turnover of up to Rs. 100 crore would be eligible for GECL funding under the Scheme.

-The amount of GECL funding to eligible MSME borrowers either in the form of additional working capital term loans (in case of banks and FIs), or additional term loans (in case of NBFCs) would be up to 20% of their entire outstanding credit up to Rs. 25 crore as on 29th February, 2020.

-The entire funding provided under GECL shall be provided with a 100% credit guarantee by NCGTC to MLIs under ECLGS.

-Tenor of loan under Scheme shall be four years with moratorium period of one year on the principal amount.

-No Guarantee Fee shall be charged by NCGTC from the Member Lending Institutions (MLIs) under the Scheme.

-Interest rates under the Scheme shall be capped at 9.25% for banks and FIs, and at 14% for NBFCs.