The Emergency Credit Line Guarantee Scheme (ECLGS)


As a part of a relief plan announced by Govt of India during Covid19, LoanTap provides additional funding to MSME and Business Enterprises at lower cost under this scheme.

Objective of the Scheme

The Emergency Credit Line Guarantee Scheme (ECLGS) is an Micro, Small and Medium Enterprises (MSME) loan scheme. It has been launched specifically to help MSMEs and other small business entities to augment their net working capital, meet operational liabilities and restart their businesses during this COVID-19 crisis. This scheme provides an additional capital of Rs 3,00,000 crore to business enterprises, primarily MSMEs. This capital is a Guaranteed Emergency Credit Line (GECL) to help MSMEs to get their business operations back on track by providing access to their working capital needs at a time when credit becomes more difficult to obtain.

Government Guarantee

Through the ECLGS scheme, the NCGTC (National Credit Guarantee Trustee Company Ltd) provides a 100% guarantee coverage in the form of a guaranteed emergency credit line (GECL) facility for an additional funding upto Rs 3 lakh crore to eligible borrowers.

Credit Facility Type

Fund Based – Term Loan Facility

Validity of the Scheme

The scheme is valid till 30.09.2021 or till an amount of Rs 3,00,000 crore is sanctioned under the GECL Scheme by all banks/NBFCs (as notified by NCGTC), whichever is earlier.

Credit Limit

Credit under ECLGS would be up to 20% of the borrower’s total outstanding credit up to Rs. 500 crores across all lending institutions, excluding off-balance sheet and non-fund-based exposures, as on 29th February 2020, subject to the borrower meeting all the eligibility criteria

In case the borrower wishes to take from any lender an amount more than the proportional 20% of the outstanding credit that the borrower has with that specific lender, a No Objection Certificate (NOC) would be required from all other lenders.

Interest Rate

For NBFC the maximum interest rate of 14% per annum has been prescribed.


Tenor : Maximum 5 years from the date of disbursement
Moratorium : Moratorium period of 12 months is provided on the principal amount. Interest shall, however, be payable during the moratorium period.
Principal : The principal shall be repaid in 48 equal instalments after the moratorium period is over.
Interest : to be serviced as and when applied.

Nature of Account

A separate loan account shall be opened.

Eligibility of the Borrower
  1. All Business Enterprises with total outstanding loans of up to Rs. 500 crores as on February 29, 2020, and annual turnover of up to Rs.250 crore in the previous financial year (2019-20) are eligible for GECL funding under the Scheme. In case accounts for FY 2019-20 are yet to be audited/finalised, the Bank may rely upon borrower’s declaration of turnover.
  2. Borrower accounts should be less than 60 days past due (DPD) as on February 29, 2020 in order to be eligible under the Scheme.
  3. Borrower accounts which had NPA or SMA-2 status, as on February 29, 2020 shall not be eligible under the Scheme.
  4. Total Outstanding Amount would comprise of the on-balance sheet exposure. Off-balance sheet and non-fund-based exposures will be excluded.
  5. Loans provided to Business Enterprises / MSMEs constituted as Proprietorship, Partnership, registered company, trusts and Limited Liability Partnerships (LLPs) shall be eligible under the Scheme. Individual Loans are not eligible under the scheme.
  6. Business Enterprises / MSMEs would include loans covered under Pradhan Mantri Mudra Yojana (PMMY) extended on or before February 29, 2020 and reported on the MUDRA portal.
  7. The Scheme is valid only for existing customers on the books of the MLI (Member Lending Institution), as on February 29, 2020.
  8. Business Enterprises / MSME borrowers 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.

Changes and amendments to the scheme are subject to changes made and informed by NCGTC and ECLGS from time to time.

For specific queries/suggestions on ECLGS

please write to – and also visit to their websites and



How to Apply for Emergency Credit Line Guarantee Scheme

At LoanTap, it is our continuous effort to enable customers achieve their dreams and aspirations – be it personal or related to their businesses. Thus, if you have an existing business loan with us and would like to apply for ECLGS loans with us, please feel free to get in touch with us or alternatively we may reach to you regarding this scheme.