NCGTC notifies Rs 3 lakh crore Emergency Credit Line Guarantee Scheme for MSMEs
Updated: May 25, 2020 10:44:16am
NCGTC notifies Rs 3 lakh crore Emergency Credit Line Guarantee Scheme for MSMEs
New Delhi, May 25 (KNN) The government today notified the Rs 3 lakh crore Emergency Credit Line Guarantee Scheme for Medium, Small and Micro Enterprises (MSMEs) under the Atma Nirbhar Bharat Abhiyan.
The scheme aims to help them the MSMEs to fight the economic distress being faced due to the COVID-19 pandemic.
Under this scheme, MSME borrowers with upto Rs 25 crores of total borrowing can avail an additional 20 percent of the loan outstanding from banks, NBFCs and other financial institutions (FI). This incremental lending by banks and financial institutions of upto Rs 3 lakh crore in total will be 100 percent guaranteed by the Government of India.
Borrowers will have a one-year moratorium of repayment, and the interest rate charged by banks/FIs will be capped 9.25 percent, and at 14 percent in the case of NBFCs.
The scheme aims at helping stressed borrowers who are not in default, therefore borrowers with standard accounts (with timely repayment), SMA-0 (with overdue of upto 30 days) and SMA-1 (with overdubs of upto 60 days) are eligible to take these loans.
The government will set up a Rs 41,600 crore fund under National Credit Guarantee Trustee Company Limited (NCGTC) for this scheme.
The Operational Guidelines of the scheme can be viewed at:
https://www.eclgs.com/documents/ECLGS_Operational_Guidelines.pdf
The details of the scheme can be viewed at: