In view of the ongoing economic distress caused due to COVID-19, Finance Ministry has announced a comprehensive package of Rs. 20 lakh crore under Emergency Credit Line Guarantee Scheme (ECLGS) in order to revive the SMEs and MSMEs. The package aims to provide aid to small businesses to assist their working capital needs, operational liabilities and other challenges that they are facing in order to restart their businesses.
Salient Features of the scheme
Enterprises that have an outstanding loan of Rs. 25 crore as on 29.2.2020 with a turnover of Rs. 100 crore in FY 2019-20 are eligible.
Maximum up to 20% of the entire fund based outstanding as on 29.02.2020, subject to the borrower meeting all the eligibility criteria. The maximum loan is upto Rs. 5 crore.
The interest rate capped shall not be more than 14 %.
Emergency Credit Line Guarantee Scheme shall provide 100% guaranteed coverage for the additional funds sanctioned under this scheme.
The maximum repayment tenure is 4 years from the date of disbursement.
The Facility Type of this is loan is Term Loan.
The moratorium period on principal amount is 12 months and the interest shall be payable by the customer on a monthly basis. And the principal shall be repaid in 36 Equal Monthly Installments (EMIs) after the moratorium period is over.
The scheme is valid till 31st October 2020, or till an amount of Rs 3,00,000 crore is sanctioned under the scheme by all banks/NBFCs whichever is earlier.
There shall be no charges/ guarantee fees charged by NCGTC.
So if you have an existing Business Loan with a lender and your business is affected by the ongoing economic crisis you may choose to opt in for Emergency Credit Line Guarantee Scheme. This is an optional scheme and should be only opted unless necessary.
Fedbank offers you the facility to avail additional loans under the Emergency Credit Line Guarantee Scheme (ECLGS). Offered specifically for our Business Loan Customers, this additional loan comes with a 100% guarantee and can provide the much needed boost to reignite your Business.
If you are an existing Fedbank customer and wish to get further details about the scheme, you can contact your nearest Fedbank Branch.