Union Bank of India sanctions 14000+ accounts under ECLGS; scheme aims to solve liquidity problems of MSMEs
Mumbai, June 3 (KNN) The Union Bank of India has launched Union Guaranteed Emergency Credit Line (UGECL) to enable Mudra beneficiaries, MSMEs and business units to solve the liquidity crisis.
The government has launched the Emergency Credit Line Guarantee scheme (ECLGS) with a credit product named Guaranteed Emergency Credit Line (GECL) for providing 100% guarantee coverage for additional working capital term loan up to 20% of their entire outstanding credit up to Rs 25.00 crore i.e. up to Rs 5.00 crore, as of 29.02.2020, subject to the account being less than or equal to 60 days past due as on that date.
Union Bank of India’s UGECL Scheme endeavors to serve the lower strata of the society thereby reducing their difficulties.
On the first day itself i.e. 1st June 2020, more than 14000 accounts have been sanctioned. Though the bank’s focus is mainly on Tier-II / Tier-III cities for UGECL, Branches pan India are actively participating in approaching the eligible customers and prompt sanction of limits.
Union Bank of India said it aims to handhold all eligible MSME/ business units in this demanding time and provide the necessary support.