Detailed Guidelines & FAQs of Emergency Credit Line Guarantee Scheme for all Business Enterprises/MSME Institution borrowers with loans of up to Rs. 25 Cr. & annual turnover of up to Rs. 100 Cr.

The Emergency Credit Line Guarantee Scheme (ECLGS) has been formulated as a specific response to the unprecedented situation caused by COVID-19 and the consequent lockdown, which has severely impacted manufacturing and other activities in the MSME sector. The Scheme aims at mitigating the economic distress being faced by MSMEs by providing them additional funding of up to Rs. 3 lakh crore in the form of a fully guaranteed emergency credit line. The main objective of the Scheme is to provide an incentive to Member Lending Institutions (MLIs), i.e., Banks, Financial Institutions (FIs) and Non-Banking Financial Companies (NBFCs) to increase access to, and enable availability of additional funding facility to MSME borrowers, in view of the economic distress caused by the COVID-19 crisis, by providing them 100 per cent guarantee for any losses suffered by them due to non-repayment of the GECL funding by borrowers.

1. Salient features of the Emergency Credit Line Guarantee Scheme (ECLGS)

1. 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.

2. 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.

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

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

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

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

2. Implementation schedule of Emergency Credit Line Guarantee Scheme (ECLGS)

The Scheme would be applicable to all loans sanctioned under GECL during the period from the date of announcement of the Scheme to 31.10.2020, or till an amount of Rs three lakh crore is sanctioned under the GECL, whichever is earlier.

3. Expected Impact of Emergency Credit Line Guarantee Scheme (ECLGS)

The Scheme has been formulated as a specific response to the unprecedented situation caused by COVID-19 and the consequent lockdown, which has severely impacted manufacturing and other activities in the MSME sector. In view of the critical role of the MSME sector in the economy and in providing employment, the proposed Scheme is expected to provide much needed relief to the sector by incentivizing MLIs to provide additional credit of up to Rs.3 lakh crore to the sector at low cost, thereby enabling MSMEs to meet their operational liabilities and restart their businesses. By supporting MSMEs to continue functioning during the current unprecedented situation, the Scheme is also expected to have a positive impact on the economy and support its revival.

4. Operational Guidelines for Emergency Credit Line Guarantee Scheme (ECLGS)

Emergency Credit Line Guarantee Scheme (ECLGSOperational Guidelines updated as on April 16, 2021

1. Name of the Scheme:

The Scheme shall be named as ‘Emergency Credit Line Guarantee Scheme (ECLGS)’.

It shall have three components, ECLGS 1.0 , ECLGS 2.0 and ECLGS 3.0 (hereinafter together referred as the ‘Scheme’).

ECLGS-1.0 refers to the scheme for providing 100% Guarantee to member lending institutions in respect of eligible credit facility extended by them to its borrowers whose total credit outstanding (fund based only) across all lending institutions and days past due as on February 29, 2020 was upto Rs.50 crore and upto 60 days respectively.

ECLGS-2.0 refers to the scheme for providing 100% Guarantee to member lending institutions in respect of eligible credit facility extended by them to its borrowers in the 26 sectors identified by the Kamath Committee on Resolution Framework vide its report dated 04.09.2020 and the Healthcare sector whose total credit outstanding (fund based only) across all lending institutions and days past due as on February 29, 2020 was above Rs.50 crore and not exceeding Rs.500 crore and upto 60 days respectively.

ECLGS 3.0 refers to the scheme for providing 100% guarantee to member lending institutions in respect of eligible credit facility extended by them to its borrowers in the Hospitality, Travel & Tourism and Leisure & Sporting sectors whose total fund based outstanding across all lending institutions is upto Rs.500 crore and days past due are upto 60 days as on 29.02.2020.

The credit product for which guarantee would be provided under the Scheme shall be named as ‘Guaranteed Emergency Credit Line (GECL)’.

2. Purpose of the Scheme:

To provide 100% guarantee coverage for the GECL assistance (pre-approved under ECLGS 1.0) up to 20% (40% in case of Hospitality, Travel & Tourism and Leisure & Sporting sectors) of loan outstanding as on 29th February, 2020 to eligible borrowers, in the form of additional working capital term loan facility (under ECLGS 1.0, 2.0 and 3.0) and/or non-fund based facility (only under ECLGS 2.0) in case of banks and Financial Institutions, and additional term loan facility (under ECLGS 1.0, ECLGS 2.0 and ECLGS 3.0), in case of NBFCs, from all Member Lending Institutions (MLIs) to eligible Business Enterprises / Micro, Small and Medium Enterprise (MSME) borrowers, including interested PMMY borrowers, in view of COVID-19 crisis, as a special Scheme.

3. Date of commencement

Scheme shall come into force from the date of issue of these guidelines by NCGTC.

4. Definitions

For the purposes of this Scheme –

  • Amount in Defaultmeans the principal and interest amount outstanding in the account of the borrower in respect of term loan/working capital term loan facility/crystalised non-fund facility (including interest) as the case may be, as on the date of the account becoming NPA, or on the date of lodgment of claim application, whichever is lower, or on such other date as may be specified by Trustee Company for preferring any claim against the guarantee cover subject to a maximum of amount guaranteed.
  • Credit facilitymeans financial assistance provided under the Scheme by way of additional working capital term loan facility (under ECLGS 1.0, 2.0 and/or ECLGS 3.0) and / or non-fund based facility (only under ECLGS 2.0) (in case of banks and Financial Institutions), and additional term loan facility (under ECLGS 1.0, 2.0 and/or 3.0) (in case of NBFCs) extended by all Member Lending Institution (MLI) to eligible Business Enterprises / Micro, Small and Medium Enterprise (MSME) borrowers/individuals who have availed loan for business purposes. The financial assistance provided as part of the Scheme is to be operated as a separate loan account.
  • Eligible borrowerunder ECLGS 1.0 means all Business Enterprises / MSMEs/individuals who have availed loan for business purposes with total credit outstanding (fund based only) of up to Rs. 50 crore as on 29.2. The Scheme is valid for existing customers on the books of the MLI. Borrower accounts should be less than or equal to 60 days past due as on 29th February, 2020 in order to be eligible under the Scheme.
  • “Eligible borrower” under ECLGS 2.0 means all Business Enterprises /MSMEs in the 26 sectors identified by the Kamath Committee on Resolution Framework and the Healthcare sector who have availed loan for business purposes with total credit outstanding (fund based only), across lending institutions, above Rs.50 crore and not exceeding Rs.500 crore as on 29.02.2020. To be eligible under ECLGS 2.0, the borrower accounts should be less than or equal to 60 days past due as on February 29, 2020.
  • “Eligible borrower” under ECLGS 3.0 means all Business Enterprises /MSMEs in the Hospitality, Travel & Tourism and Leisure & Sporting sectors whose total fund based outstanding across all lending institutions is upto Rs.500 crore and days past due are upto 60 days as on 29.02.2020.

However, exception has been allowed for overdues of the borrower in respect of their credit card/savings account/current account provided the said overdues did not exceed 1% of the loan amount (i.e. GECL amount) extended under the scheme and that the overdue amount were regularized prior to assistance being extended under the scheme and provided further that the member lending institutions ensure that the overdues were covered by the materiality concept being followed by the MLIs.

  • For the purpose of this scheme, the term ‘Business Enterprises/MSMEs’ would also include loans covered under Pradhan Mantri Mudra Yojana (PMMY).
  • ‘Guarantee Cover’ means the maximum cover available per eligible borrower of the amount in default in respect of the credit facility extended by the lending institution. For this Scheme, the guarantee coverage would be 100% of the amount in default.
  • Member Lending Institution(s)” (MLI)
    • Banks: All Scheduled Commercial Banks.
    • Financial Institutions: As defined in sub-clause (i) of clause (c) of Section 45-I of Reserve Bank of India Act.
    • NBFC: “Non-Banking Financial Company” means a non-banking financial company as defined in clause (f) of section 45-I of the RBI Act, 1934 and which has its principal business as defined by RBI and has been granted a certificate of registration under sub-section (1) of section 45-IA of the Act and Housing Finance Companies as defined under Clause (d) of Section 2 of the National Housing Bank Act, 1987 All NBFCs which have been in operation for 2 years as on 29th February, 2020 would be eligible under the Scheme.
  • NonPerforming Assetsmeans an asset classified as non-performing based on the instructions and guidelines issued by the Reserve Bank of India from time to time
  • Primary securityin respect of a credit facility shall mean the assets created out of the credit facility so extended
  • Interest Ratefor a lending institution means the rate so declared by that lending institution from time to time as per Reserve Bank of India guidelines based on which interest rate applicable for the loan will be determined.
  • “Tenure of guarantee covermeans the maximum period of guarantee cover which shall be co-terminus with the tenor of the loan under GECL

SCOPE AND EXTENT OF THE SCHEME

5. Eligible MLIs

  • MLIs for this purpose shall include all Scheduled Commercial Banks (SCBs), Non-Banking Financial Companies (NBFCs) and Financial Institutions (FIs), as specified above.
  • All NBFCs & HFCs which have been in operation for 2 years as on 29th February, 2020 would be eligible under the Scheme.

6. Duration

  • The Scheme would be applicable to all loans sanctioned under GECL during the period from the date of issue of these guidelines by NCGTC to 30.06.2021 or till guarantees for an amount of Rs 3,00,000 crore are issued (taking into account ECLGS 1.0, 2.0 & 3.0), whichever is earlier.

7. Eligible Borrowers

  • Under ECLGS 1.0, all borrower accounts pertaining to Business Enterprises /MSMEs/Loans to individuals for specific businesses purposes (as specified in the FAQs) with total credit outstanding (fund based only) across all lending institutions of up to Rs. 50 crore as on 29.2.2020 are eligible. MLIs are expected to check with credit bureau the overall outstanding of the borrower to assess the eligibility of the borrower. To be eligible under ECLGS 1.0, the Borrower accounts should be less than or equal to 60 days past due as on 29th February, 2020 in order to be eligible under the Scheme. i.e. they should not have been classified as SMA 2 or NPA by any of the lender as on 29th February, 2020.
  • Under ECLGS 2.0, all Business Enterprises /MSMEs in the 26 Covid related stressed sectors identified by the Kamath Committee on Resolution Framework and the Healthcare sector who have availed loan for business purposes with total credit outstanding (fund based only) across all lending institutions above Rs.50 crore and upto Rs.500 crore as on 29.02.2020. To be eligible under ECLGS 2.0, the borrower accounts should be less than or equal to 60 days past due as on February 29, 2020 i.e. they should not have not been classified as SMA 1, SMA 2 or NPA by any of the lender as on 29th February 2020.
  • Under ECLG 3.0, all Business Enterprises /MSMEs in the Hospitality, Travel & Tourism and Leisure & Sporting sectors whose total fund based outstanding across all lending institutions is upto Rs.500 crore and days past due are upto 60 days as on 29.02.2020.
  • Loans provided to Business Enterprises / MSMEs constituted as Proprietorship, Partnership, registered company, trusts and Limited Liability Partnerships (LLPs) or any other legal entity shall be eligible under the Scheme. As per decision taken on August 03, 2020, loans provided to individuals for business purposes under ECLGS 1.0 shall also be eligible (as specified in the FAQs).
  • For the purpose of this Scheme, Business Enterprises / MSMEs would include loans covered under Pradhan Mantri Mudra Yojana extended on or before 29.2.2020 and reported on the MUDRA portal. All eligibility conditions including the condition related to Days past due would also apply to PMMY loans.
  • Loans provided in individual capacity are covered under ECLGS 1.0. However, such loans should be restricted to business loans taken by individuals (as specified in the FAQs) for their own businesses and should be supported with a Management Certificate to this effect at the time of guarantee application. These loans should also meet the other eligibility criteria of the scheme.
  • The Scheme is valid for existing customers on the books of the MLIs.
  • Days Past Due status as on 29.2.2020 to be checked across all lending institutions from credit bureau.
  • All borrower accounts which had NPA or SMA-2 status as on 29.2.2020 shall not be eligible under ECLGS 1.0, ECLGS 2.0and ECLGS 3.0. However, as per decision taken on September 08, 2020, exception has been allowed for overdues of the borrower in respect of their credit card/savings account/current account provided the said overdues did not exceed 1% of the loan amount (i.e. GECL amount) extended under ECLGS facility and that the overdue amount were regularized prior to assistance being extended under ECLGS and provided further that the member lending institutions ensure that the overdues were covered by the materiality concept being followed By the MLIs.
  • Business Enterprises / MSME borrower 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.
  • An ‘opt-out’ option should be provided to the eligible borrowers under ECLGS 1.0 to enable them to choose whether they wish to opt out of the GECL facility. Facility under ECLGS 2.0 and ECLGS 3.0, however, shall be on ‘Opt-in’ basis.
  • For the purpose of this Scheme it is not necessary that the existing loans of the borrowers should be covered under the existing NCGTC or CGTMSE Scheme.
  • Some examples on the eligibility of the borrowers under ECLGS 1.0 are indicated below:
Name of the Borrower Overall Outstanding (fund based)
of the Borrower across all lending institutions (INR Crore)
Overall Outstanding (fund based)
of the Borrower with MLI (INR Crore)
DPD of borrower as on 29th Feb 2020
(Days)
Turnover as per latest available financials (INR Crore) Eligibility
Borrower A 60 15 30 90 Not
eligible
Borrower B 60 15 62 90 Not
eligible
Borrower C 50 50 59 300 Eligible
Borrower D 15 10 0 80 Eligible
Borrower E 20 10 0 260 Eligible
  • Some examples on the eligibility of the borrowers under ECLGS 2.0 are indicated below:
Industry sector of Borrower Overall Outstanding (fund based) of the Borrower across all lending institutions (INR Crore) Overall Outstanding (fund based) of the Borrower with MLI (INR Crore) DPD of borrower as on 29th Feb 2020 (Days) Eligibility
Healthcare Sector or 26 stressed sectors identified by the Kamath Committee on Resolution Framework 600 500 30 Not eligible
As above 500 400 62 Not eligible
As above 500 500 60 Eligible
Outside of 27 sectors indicated above 500 400 0 Not Eligible

8. Credit facility eligible under the Guarantee Coverage

  • Under ECLGS 1.0, the amount of GECL funding to eligible borrowers either in the form of additional working capital term loan facility (in case of banks and Financial Institutions), and additional term loan facility (in case of NBFCs) would be up to 20% of their total credit outstanding up to Rs. 50 crore (fund based only) as on 29th February, 2020, subject to the borrower meeting all the eligibility criteria.
  • Under ECLGS 2.0, the amount of GECL funding to eligible borrowers either in the form of additional working capital term loan facility and / or non-Fund based facility or a mix of the two (in case of banks and Financial Institutions), and additional term loan facility (in case of NBFCs) would be up to 20% of their total credit outstanding (fund based only) up to Rs. 500 crore as on 29th February, 2020, subject to the borrower meeting all the eligibility criteria. Credit facility under ECLGS 2.0 could be in the form of fund based or non-fund based facility or a mix of the two.
  • Under ECLGS 3.0, the amount of GECL funding to eligible borrowers either in the form of additional additional working capital term loan facility (in case of banks and Financial Institutions) and additional term loan facility (in case of NBFCs) would be up to 40% of their total credit outstanding upto Rs.500 crore (fund based only), subject to the borrower meeting all the eligibility criteria. Such of the eligible borrowers, who are eligible under ECLGS 3.0 and have already availed benefit under ECLGS 1.0 or ECLGS 2.0 shall be eligible for additional credit upto 20% of their total credit outstanding as on 29.02.2020.
  • Total Outstanding Amount would comprise of the on-balance sheet exposure such as outstanding amount across WC loans, term loans and WCTL loans. Off-balance sheet and non-fund based exposures will be excluded.
  • MLIs are expected to check with credit bureau the overall outstanding of the borrower to assess the overall additional loan amount eligible for sanction under the Scheme.
  • MLIs would be required to open a separate account for Credit Facility extended through the Scheme
  • Loans extended through current Government schemes such as PMEGP, PMMY etc. would continue to be categorized under that scheme as earlier. WCTL/Term Loans under this Scheme shall be over and above the existing loan.
  • In case a borrower has existing limits with multiple lenders, GECL may be availed either through one lender or multiple lenders depending upon the agreement between the borrower and the MLI.
  • In case the borrower wishes to take from any lender an amount more than the proportional 20%(40% in case of ECLGS 3.0) of the outstanding credit that the borrower has with that particular lender, a No Objection Certificate (NOC) would be required from such lenders whose share of ECLGS loan is being proposed to be taken from the specific lender. However, it would be necessary for the specific lender to agree to provide ECLGS facility on behalf of such of the lenders
  • No NOC will, however, be required if the GECL availed from a particular lender is limited to the proportional 20% (40% in case of ECLGS3.0) of the outstanding credit that the borrower has with that lender.
  • MLIs are expected to have simple and enabling criteria to assess the borrower eligibility. Since the loans are being provided to existing borrowers it is expected that the time required for due diligence would be minimal in nature. MLIs should work towards enabling access of this facility to all the eligible borrowers by educating borrowers regarding the Scheme and steps to avail credit under the Scheme.
  • Examples to calculate the maximum loan amount covered under the Guarantee coverage:
Name of the Borrower Overall Outstanding (fund based) of the Borrower across all lending institutions (INR Crore) Overall Outstanding (fund based) of the Borrower with MLI (INR Crore) Total Maximum Loan Amount allowed under the scheme (INR Crore) Total Maximum Loan Amount allowed without NOC for MLI (INR Crore)
A B C= 20% of A D= 20% of B
Borrower A 20 15 4 3
Borrower B 5 2 1 0.4
Borrower C 25 25 5 5
Borrower D 15 10 3 2
Borrower E 400 100 80 20
Borrower F 500 300 100 60

Under ECLGS 1.0, the maximum loan amount calculated under Columns C & D can be extended as a fund based facility only.

Under ECLGS 2.0, the maximum loan amount calculated at Columns C & D can be extended as a fund based or non-fund based or a mix of the two. For example a borrower eligible for say Rs.100 crore credit facility under ECLGS 2.0 could be provided this facility in any one or more of the following ways :

Eligible credit facility under ECLGS 2.0 Fund based facility Non fund based
100 100 0
100 0 100
100 50 50
100 80 20
  • Borrowers eligible for assistance under ECLGS 3.0 who have not availed any assistance under ECLGS 1.0 and / or 2.0 would be eligible for full 40% assistance under ECLGS 3.0. Examples to calculate the maximum loan amount eligible under ECLGS 3.0 is given below:
Name of the Borrower (in hospitality sector, Travel & Tourism sector and Leisure & Sporting sector) Overall Outstanding (fund based) of the Borrower across all lending institutions (INR Crore) Total Maximum Loan Amount allowed under the scheme (INR Crore) Already availed under ECLGS 1.0 or 2.0 (INR Crore) Total Maximum Loan Amount allowed under ECLGS 3.0 (INR Crore)
A B= 40% of A C D = C – B
Borrower A 20 8 3 5
Borrower B 5 2 1 1
Borrower C 25 10 5 5
Borrower D 15 6 0 6
Borrower E 400 160 0 160
Borrower F 500 200 80 120

9. Interest Rate of Credit under the Scheme

Interest Rate on GECL shall be capped as under:

  • For Banks and FIs, lending rate linked to one of the external benchmark lending rate prescribed by RBI (for MSMEs) or marginal cost of lending rate (for non-MSMEs) +1%, subject to a maximum of 9.25% per annum.
  • For NBFCs, the interest rate on GECL shall not exceed 14% per annum.
  • Since the additional facility is to be provided to existing customers, no additional processing fee shall be charged by MLIs to borrowers.
  • No penal interest due to any non-compliance of the already accepted covenants on the existing credit facilities may be charged on additional loans during the sanction time.

10. Nature of account and Tenor of Credit under the Scheme

  • A separate loan account should be opened for the borrower, distinct from the existing loan account(s), for coverage under the Scheme.
  • Under ECLGS 1.0, the tenor of loans provided under GECL shall be four years from the date of first disbursement.
  • Under ECLGS 2.0, the tenor of facilities provided under GECL shall be for a period of 5 years from the date of first disbursement of fund based facility or first date of utilization of non-fund based facility, whichever is earlier. To be eligible for guarantee cover of the sanctioned non-fund based facility, first utilization must happen on or before September 30, 2021.
  • Under ECLGS 3.0, the tenor of facilities provided under GECL shall be six years from the date of first disbursement.
  • The last date of disbursement for fund based facility under the scheme (ECLGS 1.0 & ECLGS 2.0) shall be September 30, 2021.
  • The last date of disbursement under ECLGS 3.0 shall be September 30, 2021.
  • While no last date has been stipulated for the non-fund based facility under ECLGS 2.0, the MLIs should ensure to progressively reduce their liability under the non-fund based facility as the guarantee cover under the scheme for a particular borrower shall expire on completion of 5 years from the first date of utilization by the borrower under ECLGS 2.0 or September 30, 2026, whichever is earlier.
  • No pre-payment penalty shall, however, be charged by the MLIs in case of early repayment.
  • Moratorium period of one year on the principal amount shall be provided to borrowers for the fund based portion of GECL credit under ECLGS 1.0 & 2.0, during which interest shall be payable. Moratorium period of 2 years on the principal amount shall be provided to borrowers for GECL facility (only fund based is allowed) under ECLGS 3.0, during which period interest shall be payable.
  • The principal shall be repaid in 36 installments under ECLGS 1.0, and in 48 instalments under ECLGS 2.0 and 3.0 after the moratorium period is over.
  • Pre-payment of facilities to be allowed at no additional charge to the borrower.
  • The account may be operated in combination with applicable Interest Subvention Scheme(s) as far as feasible.
  • RBI’s approval has been obtained for keeping risk weight for loans provided under GECL at zero.

11. Security

  • The additional WCTL or non fund based facility (in case of banks and FIs)/ Term loan (in case of NBFCs) facility granted under ECLGS 1.0 or 2.0 or 3.0 shall rank second charge with the existing credit facilities in terms of cash flows (including repayments) and security, with charge on the assets financed under the Scheme to be created on or before September 30, 2021 or date of NPA, whichever is earlier.
  • No additional collateral shall be asked for additional funding under GECL.
  • As per decision taken on September 08, 2020, the stipulation of second charge has been waived in respect of all loans up to Rs.25 lakh (outstanding as on February 29, 2020 plus loan sanctioned under GECL), subject to MLI ensuring to safeguard the interests of NCGTC. In this regard, MLI shall obtain a suitable undertaking (as per draft format provided by NCGTC and hosted on the website) from the borrower.

12. Guarantee Fee

No Guarantee Fee shall be charged from the MLIs by NCGTC for the Credit facilities provided under the Scheme.

13. Extent of the Guarantee Coverage

The Trustee Company shall provide 100% Guarantee coverage on the outstanding amount for the credit facility provided under the Scheme as on the date of NPA or on the date of lodgment of claim, whichever is lower.

14. Definition of Default

The definition of default for borrowers shall be as per the instructions and guidelines issued by the Reserve Bank of India from time to time under extant norms on income recognition, asset classification and provisioning.

15. Invocation of guarantee

  • The Member Lending Institutions (MLIs) are required to inform the date on which the account was classified as NPA within 90 days of the account being classified as NPA.
  • The Trustee Company shall pay 75 per cent of the guaranteed amount within 30 days of preferring of eligible claim by the lending institution, subject to the claim being otherwise found in order and complete in all respects. The balance 25 per cent of the guaranteed amount will be paid on conclusion of recovery proceedings or till the decree gets time barred, whichever is earlier. With regard to loans to individuals, furnishing of a Statutory Auditor Certificate certifying the eligibility of the loan availed and claim preferred as per scheme guidelines would be essential prior to final settlement of balance 25%.
  • The entire claim process, commencing from reporting of NPAs to invocation of guarantee to lodgment of interim and final claim would be as explained in detail in the FAQs.

16. Appropriation of amount realized by the member lending institution in respect of a credit facility after the guarantee has been invoked

Post invocation of the guarantee claim, if any recoveries are made in the account, MLIs shall first adjust such recoveries towards default amount relating to first charge and the legal costs incurred by them for recovery of the amount and shall thereafter remit to NCGTC the balance recoveries.

17. Agreement to be executed by the member lending institution

  • A member lending institution shall not be entitled to a guarantee in respect of any eligible credit facility granted by it unless it has submitted an Undertaking with the Trustee Company in such form as may be required by the Trustee Company for covering by way of guarantee, under the Scheme all the eligible credit facilities granted by the lending institution, for which provision has been made in the Scheme.
  • All interested and eligible MLIs are required to submit the Undertaking to NCGTC for the purpose of this Scheme

18. Responsibilities of member lending institution under the Scheme:

Member Lending Institutions shall provide certain data points on a fortnightly basis to Trustee Company to enable Trustee Company to track the outreach and impact of the Scheme. The indicative data points required shall be as follows:

(i) Number of eligible borrowers and the amount outstanding as on 29th February, 2020 (to be shown separately for Business Enterprises, MSME and PMMY borrowers)

(ii) Number of Business Enterprises, MSMEs, PMMY and individual borrowers sanctioned GECL facility under the Scheme (to be shown separately for MSME, PMMY and individual borrowers)

(iii) Number of Business Enterprises, MSMEs, PMMY and individual borrowers disbursed GECL facility under the Scheme (to be shown separately for MSME, PMMY and individual borrowers)

(iv) Total Amount of Funds sanctioned under the Scheme with break up across TL (in case of NBFCs) and WCTL/non-fund based facility (in case of banks and FIs), to be shown separately for Business Enterprises, MSMEs, PMMY and individual borrowers

(v) Total Amount of Funds disbursed under the Scheme with break up across TL (in case of NBFCs) and WCTL/non-fund based facility (in case of banks and FIs), to be shown separately for Business Enterprises, MSMEs, PMMY and individual borrowers

(vi) Total Outstanding Amount for Term loans (in case of NBFCs) and for WCTL/non-fund based facility (in case of banks and FIs), to be shown separately for Business Enterprises, MSMEs, PMMY and individual borrowers

(vii) Number of employees employed by the borrowers, to be shown separately for Business Enterprises, MSMEs, PMMY and individual borrowers (to be provided at the time of sanction and then to be updated monthly)

(viii) Default ratio and NPA ratio

(NCGTC may seek additional information from MLIs within extant regulation)

(ix) Should enable communication of the Scheme to the borrowers by highlighting the Scheme details on their website and linking to Scheme webpage

(x) Lending institution should work towards creating awareness for the Scheme by enabling communication of the Scheme through SMS and Email campaigns to all eligible borrowers

(xi) The lending institution shall closely monitor the borrower account, and shall put in all required efforts to ensure that the account is serviced regularly

(xii) The lending institution shall safeguard the primary securities in respect of the credit facility in good and enforceable condition

(xiii) The lending institution shall ensure that the guarantee claim in respect of the credit facility and borrower is lodged with the Trustee Company in the form and in the manner and within such time as may be specified by the Trustee Company in this behalf and that there are no delays on its part to notify the default in the borrowers account which shall result in the Trustee Company facing higher guarantee claims

(xiv) The payment of guarantee claim by the Trustee Company to the lending institution does not in any way take away the responsibility of the lending institution to recover the entire outstanding amount of the credit from the borrower. The lending institution shall exercise all the necessary precautions and maintain its recourse to the borrower for entire amount of credit facility owed by it and initiate all necessary actions for recovery of the outstanding amount, including such action as may be advised by the Trustee Company

(xv) The lending institution shall comply with such directions as may be issued by the Trustee Company from time to time for facilitating recoveries in the guaranteed account, or safeguarding its interest as a guarantor, as the Trustee Company may deem fit and the lending institution shall be bound to comply with such directions

(xvi) The lending institution shall, in respect of any guaranteed account, exercise the same diligence in recovering the dues, and safeguarding the interest of the Trustee Company in all the ways open to it as it might have exercised in the normal course if no guarantee had been furnished by the Trustee Company. The lending institution shall, in particular, refrain from any act of omission or commission, either before or subsequent to invocation of guarantee, which may adversely affect the interest of the Trustee Company as the guarantor. In particular, the lending institution should intimate the Trustee Company while entering into any compromise or arrangement, which may have the effect of discharge or waiver of personal guarantee(s) or security

(xvii) The lending institution shall also ensure either through a stipulation in an agreement with the borrower or otherwise, that it shall not create any charge on the security held in the account covered by the guarantee for the benefit of any account not covered by the guarantee, with itself or in favour of any other creditor(s) without intimating the Trustee Company. Further the lending institution shall secure for the Trustee Company or its appointed agency, through a stipulation in an agreement with the borrower or otherwise, the right to list the defaulted borrowers’ names and particulars on the Website of the Trustee Company.

19. Status of the borrower account on the date of sanction / disbursement

The borrower account otherwise eligible under the scheme should not be an NPA as on the date of sanction / disbursement.

20. Modifications in the Scheme

Any changes to the current structure of the Scheme, including but not limited to the eligibility criteria, guarantee fee, rate of interest and tenor of GECL under the Scheme, shall be decided by the Management Committee for the ECLGS Fund.

21. The scheme guidelines may be read along with the FAQs uploaded on the website from time to time.

5. Frequently Asked Questions (FAQ) on Guaranteed Emergency Credit Line of Rs. 3 lakh crore

Q.1 What is Guaranteed Emergency Credit Line (GECL)?

Ans: The GECL is a loan for which 100% guarantee would be provided by National Credit Guarantee Trustee Company (NCGTC) to Member Lending Institutions (MLIs), and which will be extended in the form of additional working capital term loan facility and non-fund based facility in case of Scheduled Commercial Banks (SCBs) and Financial Institutions (FIs), and additional term loan facility in case of Non-Banking Financial Companies (NBFCs), to eligible MSMEs/ Business Enterprises, individual borrowers in case of the original loan having been for own business and interested Pradhan Mantri Mudra Yojana (PM MY) borrowers. Credit under GECL would be up to 20% of the borrower’s total outstanding credit up to Rs. 500 crore (40% in respect of borrowers in the Hospitality sector, Travel & Tourism sector and Leisure & Sporting sector), excluding off-balance sheet and non-fund based exposures, as on 29th February, 2020, i.e., additional credit shall be maximum up to Rs.100 crore (Rs.200 crore in respect of borrowers in the Hospitality sector, Travel & Tourism sector and Leisure & Sporting sector).

GECL in respect of borrowers with credit outstanding upto Rs.50 crore is open for all MSMEs/businesses, including MUDRA borrowers. However, GECL in respect of borrowers with credit outstanding above Rs.50 crore and not exceeding Rs.500 crore is restricted only to borrowers in the 26 sectors identified by Kamath Committee on Resolution Framework in its report of September 04, 2020, the Healthcare sector and Hospitality, Travel & Tourism and Leisure & Sporting sectors.

GECL in respect of borrowers in the 26 sectors identified by Kamath Committee on Resolution Framework in its report of September 04, 2020 and the Healthcare sector with credit outstanding above Rs.50 crore and not exceeding Rs.500 crore can be provided as fund based or non-fund based or a mix of two.

Q.2 What is the objective of the Scheme?

Ans: The Scheme is a specific response to the unprecedented situation COVID-19. It seeks to provide much needed relief to the M SM E sector by incentivizing M LIs to provide additional credit of up to Rs. 3 lakh crore at low cost, thereby enabling MSMEs to meet their operational liabilities and restart their businesses.

Q.3 What is the Emergency Credit Line Guarantee Scheme?

Ans: The Emergency Credit Line Guarantee Scheme provides 100% guarantee coverage by NCGTC to MLIs on GECL of up to Rs. 3 lakh crore to eligible MSMEs. MSMEs for the purpose of this Scheme will include MSMEs/ Business Enterprises which are constituted as Proprietorships, Partnerships, Registered Companies, Trusts and Limited Liability Partnerships (LLPs), interested borrowers under PM MY, and also loans to individuals for business purpose.

Q.4 Who are the M LIs under the Scheme?

Ans: All SCBs are eligible as MLIs. NBFCs which have been in operation for at least 2 years as on 29.2.2020, and FIs will also be eligible as MLIs under the Scheme.

Q.5 What will be the definition of FIs for the purpose of this Scheme?

Ans: FIs for the purpose of this Scheme will include All India Financial Institutions as defined under sub-clause (i) of clause (c) of Section 45-I of RBI Act.

Q.6 What is the duration of the Scheme?

Ans: The Scheme would be applicable to all loans sanctioned under GECL during the period from May 23, 2020 to June 30, 2021, or till guarantees for an amount of Rs. 3 lakh crore are issued by NCGTC, whichever is earlier.

Q.7 What would be the guarantee coverage under the Scheme?

Ans: The entire funding provided under GECL shall be provided with a 100% credit guarantee coverage by NCGTC under the Scheme.

Q.8 What will be the eligibility criteria for MSMEs to avail the benefit of the Scheme?

Ans: The eligibility criteria under the Scheme are as under:

  • All MSME borrower accounts with combined outstanding loans across all MLIs of up to Rs. 50 crore in any sector and upto Rs.500 crore in respect of borrowers in the Hospitality sector, Travel & Tourism sector and Leisure & Sporting sector and classified as regular, SMA-0 or SMA-1 as on 29.2.2020.
  • All MSME borrower accounts in the 26 sectors identified by the Kamath Committee on Resolution Framework in its report of September 04, 2020 and the Healthcare sector having combined outstanding loans across all MLIs above Rs. 50 crore and not exceeding Rs.500 crore and classified as regular, SMA-0 or SMA-1 as on 29.2.2020.
  • The Scheme is valid only for existing customers on the books of the MLI.
  • The MSME borrower must be GST registered in all cases where such registration is mandatory. This condition will not apply to MSMEs that are not required to obtain GST registration.
  • Loans provided to individuals for own business purposes will be covered under the Scheme.

Q.9 Will the Scheme also cover borrowers under PM MY?

Ans: Yes, loans under PM MY extended on or before 29.2.2020, and reported on the MUDRA portal shall be covered under the Scheme.

Q.10 Will GECL be extended as a separate loan account, or as part of the existing loan account of the borrower?

Ans: A separate loan account shall be opened for the borrower for extending additional credit under GECL. This account will be distinct from the existing loan account(s) of the borrower.

Q.11 Will loans under ECLGS 1.0 be automatically given without any application or solicitation from the borrower?

Ans: This is a pre-approved loan. An offer will go out from the MLI to the eligible borrowers for a pre-approved loan which the borrower may choose to accept. If the MSME accepts the offer, it will be required to complete requisite documentation. Thus, an ‘opt-out’ option will be provided to eligible borrowers under the Scheme, i.e., if the borrower is not interested in availing the loan, he/she may indicate accordingly.

Q.12 What would be the procedure followed in case a borrower has loan accounts with multiple lenders?

Ans:

  • In case a borrower has existing limits with multiple lenders, GECL may be availed either through one lender or each of the current lenders in proportion depending upon the agreement between the borrower and the MLI.
  • In case the borrower wishes to take from any specific lender an amount more than the proportional 20% (40% in respect of borrowers in the Hospitality sector, Travel & Tourism sector and Leisure & Sporting sector) of the outstanding credit that the borrower has with that particular lender, a No Objection Certificate (NOC) would be required from such lenders whose share of loan under ECLGS is being proposed to be taken from the specific lender. However, it would be necessary for the specific lender to agree to provide loan under ECLGS on behalf of such lenders.
  • No NOC will, however, be required if the GECL availed from a particular lender is limited to the proportional 20% (40% in respect of borrowers in the Hospitality sector, Travel & Tourism sector and Leisure & Sporting sector) of the outstanding credit that the borrower has with that lender.

Q.13 To avail GECL, will it be necessary for existing loans of the borrower to be covered under existing guarantee schemes such as CGFMU or CGTMSE?

Ans: No.

Q.14 Will the interest rate on GECL be capped?

Ans: Yes, interest rates on GECL shall be capped as under:

  • For Banks and FIs, one of the RBI prescribed external benchmark linked rates (for MSMEs) and marginal cost based lending rate (for non-MSMEs) +1% subject to a maximum of 9.25% per annum
  • For NBFCs, the interest rate on GECL shall not exceed 14% per annum

The Scheme may also be operated in combination with applicable interest subvention schemes, as far as feasible.

Q.15 What would be the tenor of loans provided under GECL?

Ans: The tenor of loans provided under GECL shall be four years from the date of first disbursement in respect of borrowers under ECLGS 1.0.

The tenor of fund based facility provided under ECLGS 2.0 shall be five years from the date of first disbursement/first utilization under fund based or non-fund based facility. No tenor has been prescribed for non-fund based facility, but the guarantee cover on the non-fund based facility shall expire on completion of 5 years from the date of first disbursement/first utilization under fund based or non-fund based facility. It may be noted that first tranche of non fund based facility should be utilized on or before September 30, 2021.

The tenor of loans provided under ECLGS 3.0 shall be six years from the date of first disbursement. No pre-payment penalty shall, however, be charged by the MLIs in case of early repayment.

Q.16 Is there any moratorium period prescribed under the Scheme?

Ans: Yes, a moratorium period of one year on the principal amount shall be provided for fund based GECL facility under ECLGS 1.0 & ECLGS 2.0 and a moratorium period of two years on the principal amount shall be provided for fund based GECL facility under ECLGS 3.0. Interest shall, however, be payable during the moratorium period. The principal shall be repaid in 36 instalments after the moratorium period is over in case of loans covered under ECLGS 1.0, in 48 instalments after the moratorium period in case of loans covered under ECLGS 2.0 and ECLGS 3.0. There shall be no moratorium for non-fund based facility.

Type of facility Total repayment period including moratorium Moratorium period on principal repayment
GECL 1.0 4 years 1 year
GECL 2.0 5 years 1 year
GECL 3.0 6 years 2 years

Q.17 Is any turnaround time prescribed for MLIs under the Scheme for sanction of GECL?

Ans: Indicative turnaround time for loans under the Scheme shall be the same as those prescribed by Department of Financial Services for credit support in the context of COVID -19 pandemic.

Q.18 Will any guarantee fee be charged under the Scheme by NCGTC?

Ans: No, NCGTC will not charge any guarantee fee under the Scheme.

Q.19 Will any processing fee be charged by MLIs for sanction of loans under GECL?

Ans: Since additional credit under GECL is to be provided to existing customers, no additional processing fee shall be charged by lenders.

Q.20 Will MLIs ask for any additional collateral for the GECL facility?

Ans: No additional collateral shall be asked by MLIs for additional credit extended under GECL.

Q.21 Will the categorization of existing loans extended through current Government schemes such as PMEGP or PMMY change if GECL is provided to such borrowers?

Ans: No. Existing loans extended through current Government schemes would continue to be categorized under that scheme as earlier. GECL under this Scheme shall be over and above the existing loan.

Q.22 What will be the risk weight assigned to the credit extended under GECL?

Ans: Zero risk weight be assigned to the credit facilities extended under GECL, as per RBI Circular No. 76/21.06.201/2019-20 dated June 21, 2020.

Q.23 What will be the security on credit extended under GECL Scheme?

Ans: The credit under GECL will rank second charge with the existing credit facilities in terms of cash flows (including repayments) and securities, with charge on the assets financed under the Scheme to be created within a period of 3 months from the date of disbursal.

Q.24 Will MLIs be required to enter into any agreement with NCGTC for the purpose of this Scheme?

Ans: Yes, MLIs will be required to submit an Undertaking to NCGTC for the purpose of this Scheme.

Q.25 How will the guaranteed amount be paid by NCGTC to the MLIs on invocation of the guarantee?

Ans:  75% of the guaranteed amount will be paid by NCGTC within 30 days of an eligible claim being preferred by the MLI concerned. The balance 25% will be paid on conclusion of recovery proceedings or till the decree gets time barred, whichever is earlier.

Q.26 Who will issue detailed operational guidelines for ECLGS, and who will have the authority to modify provisions of the Scheme/operational guidelines?

Ans: NCGTC has issued the detailed operational guidelines for the Scheme. The Management Committee for ECLG S fund will have the authority to approve any changes to the current structure of the Scheme/ operational guidelines.

Q.27 I run a business enterprise and have a GST registration. However, I am not registered as an MSME nor do I have Udyog Aadhar. My Bank also does not classify me as an MSME borrower. Am I eligbile under the scheme?

Ans: You are eligible if

(i) you have total credit outstanding of Rs. 50 Crore or less as on 29th Feb 2020 ; or

(ii) belong to the 26 sectors identified by the Kamath Committee on Resolution Framework in its report dated September 04, 2020 or the Healthcare sector and the total credit outstanding is above Rs.50 Crore and not exceeding Rs.500 crore as on 29th Feb 2020; or

(iii) you have total credit outstanding of Rs. 500 Crore or less as on 29th Feb 2020 and belong to the Hospitality sector, Travel & Tourism sector and Leisure & Sporting sector

(iv) you have a GST registration or were not required to obtain such GST registration Udyog Aadhar or recognition as MSME is not required under this Scheme; and

(v) you meet other eligibility criteria prescribed under the scheme.

Q.28 My Bank/ NBFC has offered me a pre approved loan of 15% only though the scheme mentions 20%. Can the Bank/ NBFC do so?

Ans: Under ECLGS, Banks/ NBFCs/HFCs are to offer loans up to 20% (40% in respect of borrowers in the Hospitality sector, Travel & Tourism sector and Leisure & Sporting sector). Actual loan extended can therefore be less than 20% (or less than 40% in respect of borrowers in the Hospitality sector, Travel & Tourism sector and Leisure & Sporting sector). This is generally on mutually agreed terms between the borrower and the lender based on factors relevant to the business operations.

Q.29 I run a retail shop. Am I eligible for coverage?

Ans: See answer to question 27

Q.30 I operate a lending business. Am I eligible?

Ans: No. Typically lending institutions get funds from banks/ NBFCs through on lending, refinance, asset purchase, securitization, assignment etc. There are therefore other windows available including the Partial Credit Guarantee Scheme and the Special Liquidity Facility.

Q.31 Are all NBFCs eligible to become MLIs with NCGTC?

Ans: No. The NBFC must be registered with RBI or NHB, should be meeting the CRAR/prudential norms prescribed by RBI/NHB and have been in lending business for at least two years as on 29th Feb 2020. The Managing Committee of the Scheme may prescribe additional qualification criteria from time to time.

Q.32 What will be the procedure for claim settlement ?

Ans: Please see reply under FAQ No. 71.

Q.33 Can new MSME borrowers get covered under the scheme?

Ans: ECLGS scheme is only for existing borrowers on the books of the banks as on 29th Feb 2020. Any new borrower can, however, be covered under the ongoing CGTMSE and NCGTC schemes

Q.34 Can co-applicant loans between entity and the promoter or director get covered under the scheme ?

Ans: Yes

Q.35 Are off balance sheet loans provided to MSME borrowers covered as part of the scheme?

Ans: No, the scheme does not cover the off-balance sheet exposure. Only on balance sheet exposures outstanding as on 29th Feb, 2020 are eligible to be covered under the scheme.

Q.36 How is the interest rate to be decided for loans under the scheme?

Ans: As per RBI guidelines dated September 04, 2019 & February 26, 2020, all loans to MSMEs must be benchmarked to one of the external benchmark rates. Banks are free to decide the spread over the external benchmark as per their approved policies. Accordingly, loans under the scheme must adhere to the above-mentioned guidelines and linked to the external benchmark rates with regard to MSMEs. For non-MSMEs, interest rate would be linked to marginal cost based lending rate.

As part of the Scheme, overall lending rate is capped at 1% above the external benchmark lending rate (for MSMEs) and marginal cost based lending rate (for non-MSMEs) or 9.25% p.a. whichever is lower. Loans which are allowed not to be benchmarked to external rates shall be capped at maximum of 9.25%.

For e.g. for Bank ABC External Benchmark Lending Rate is 7.80 %; i.e. RBI Repo Rate (4.0%)

+ Spread (3.80%). For the purpose of this scheme the lending rate would be Min of (7.8% + 1%

= 8.8% and 9.25%) = 8.8% in this case.

For e.g. for Bank ABC1 External Benchmark Lending Rate is 8.50 %; i.e. RBI Repo Rate (4.0%) +

Spread (4.50%). For the purpose of this scheme the lending rate would be Min of (8.5%

+ 1% = 9.5% and 9.25%) = 9.25% in this case.

As regards NBFCs / HFCs, the interest rate has been capped at 14% p.a.

Q.37 I am not a registered MSME and operate a general/retail business. My account was NPA as on 29th Feb, 2020. Am I eligible for ECLGS?

Ans: Accounts that are NPA or where overdues have crossed 60 days (SMA-II) are not eligible under ECLGS 1.0, ECLGS 2.0 and ECLGS 3.0.

Q.38 My lender, which is an NBFC, proposes to charge 15% for the loan. Is this permissible?

Ans: While a NBFC lender can charge a rate of interest higher than 14%, such a loan would not be eligible for guarantee coverage.

Q.39 What is the process of issue of Guarantees under the scheme ?

Ans: As per the system developed by us for issue of guarantee under ECLGS, once a lender enters the details of the loan sanctioned to an eligible borrower as per the scheme guidelines, the system shall approve the guarantee automatically and will provide Application Reference No. and Credit Guarantee Number to the lender, which shall be used by the lender for later references.

No documents are sought at the time of application lodgment of guarantee, except in the case of individual loans where a management certificate certifying that the original loan was for business purposes.

Q.40 Will a portfolio / clients that has been purchased under a pool qualify under this scheme?

Ans: The guarantee is available to the existing lender for the additional loan extended during the specified period. Thus, the lenders on whose book these borrowers currently are can provide these facilities provided the borrowers meet all the eligible conditions as defined in the scheme guidelines. It should be noted that the eligible amount for loan under the scheme is 20% of the outstanding amount as on 29th Feb 2020. The buyer of the pool should be an MLI under the Scheme.

Q.41 Once the credit facility / loan under the scheme is extended to eligible clients, can the loans be assigned or be eligible for securitization?

Ans: The facilities provided under the scheme are eligible for securitization. Since the facility is to be opened as a separate loan account it can be treated at par with normal loans for securitization purpose. Other conditions of eligibility must be fulfilled.

Q.42 In case where the original loan is an unsecured loan (i.e. with no primary or collateral security), is it required to create a charge within a period of 3 months as applicable for ECLGS scheme?

Ans: If the underlying loan is unsecured in nature, no charge is required to be created/extended.

Q.43 In retail financial sector, it is a common practice to balance transfer of loans from one entity to other. Will these customers be eligible for this scheme?

Ans: Mere transfer of loan from one lender to the other will not invalidate the customer or reduce the maximum loan eligibility available to such customer under this scheme, provided the lender taking over is also eligible under the scheme as per the criteria defined in the scheme guidelines.

M LIs should note that the overall loan under the scheme will be capped at overall outstanding as on 29th Feb, 2020. The MLI taking over should submit and retain proof of the outstanding loans of the borrower as on 29th February 2020 and that the borrower has not obtained the eligible GECL from the earlier MLI so that the total GECL provided to the borrower is within the eligible limit.

Q.44 Will MSME customer of HFC entitled for this scheme?

Ans: MSME portfolio of HFC will be eligible. All MSME Loans must be given to entities which are eligible to be covered and provided other eligibility conditions are fulfilled.

Q.45 What would be the format of NOC and undertaking to be obtained from other lender?

Ans: No format has been prescribed under the scheme. M LIs may use whatever they have been following till now.

Q.46 What would be the nature of guarantee under the scheme?

Ans: The Credit Guarantee from NCGTC would be unconditional and irrevocable.

Q.47 What would be the risk weight assigned to loans provided guarantee cover under the scheme ?

Ans: Zero risk weight is to be assigned to the credit facilities extended under the scheme, as per RBI Circular No. 76/21.06.201/2019-20 dated June 21, 2020.

Q.48 Guarantee was issued under the scheme to a borrower who was eligible at the time of issue of guarantee. However, subsequently its combined loan outstanding across all MLIs exceeded Rs.500 crore or annual turnover exceeded Rs.250 crore. Whether the guarantee issued in such a case become void ?

Ans: No, it would not become void. Eligibility is reckoned at the time of sanction of the loan. Clause 6 of the Undertaking furnished by MLIs shall therefore stand deleted.

Q.49 I run my business as a Society/ HUFs. Am I eligible under the scheme of ECLGS ?

Ans: Yes, all legal entities are eligible. Association of Persons is not a legal entity and hence not eligible for assistance under ECLGS.

Q.50 Whether individuals are covered under ECLGS, if they are MUDRA borrowers?

Ans: Yes, they are eligible, provided they meet the other eligibility norms of the scheme and the lender should have reported loans extended by it on the Mudra portal.

Q.51 In case of MUDRA borrowers, if the total outstanding after support under ELGS exceeds the limit of Rs.10 lakh as specified for MUDRA borrowers, will they continue to get cover under Credit Guarantee Fund for Micro Units ?

Ans: Yes, the additional loan would be covered under NCGTC’s ECLGS, while the original loan would continue under CGFMU as previously covered.

Q.52 Whether educational institutes/ agri allied activities eligible for coverage under the scheme?

Ans: The scheme is for business activities. Any activity that is classified as an MSME or a business enterprise as per various guidelines issued by RBI or any Ministry from time to time are eligible for coverage under the scheme. If the other norms of the scheme are complied with, these institutions shall stand eligible.

Q.53 Whether projects under implementation (who have not yet started commercial operations or have not completed one year of commercial operations) eligible for coverage under the scheme?

Ans: No restriction has been imposed for such types of units as they would also have been impacted by the pandemic and may suffer time and cost overrun. The concerned MLI should ensure overall eligibility under the scheme.

Q.54 What is meant by Commercial Vehicle (CV) ?

Ans: It means a vehicle registered for commercial purposes.

Q.55 Whether RRBs are eligible for coverage under the scheme ?

Ans: Yes, they are eligible.

Q.56 I am a borrower and have furnished corporate guarantee/ guarantee of self / third party to my Bank on an existing loan. Do I have to arrange to extend this previously furnished guarantee for the 20% loan being availed by me under ECLGS ?

Ans: No. Extension of any guarantee or obtention of any fresh guarantee will make the guarantee cover provided by NCGTC under the scheme void.

Q.57 The Bank has taken first charge on perishable assets/current assets against short term loans to a borrower and extended second charge on these assets to NCGTC against 20% facility under ECLGS. What would be the security available once these assets are sold off/disposed ?

Ans: The second charge assumes the nature of first charge after payment of full dues of first charge holder. However, if the assets against which second charge was created itself are not there, then the facility extended under ECLGS would become unsecured. New assets would not be required for creating or sustaining the charge.

Q.58 Some lenders have indicated a negative list of sectors for consideration under ECLGS. Does the scheme have any restriction on business activity of a borrower?

Ans: ECLGS is admissible for all business activities. There is no negative list for coverage under ECLGS.

Q.59 Whether individuals are eligible for assistance under the scheme ?

Ans: Yes, business loans availed by individuals for their own businesses shall be eligible under the scheme. However, the MLI shall have to submit a suitable Management Certificate at the time of lodgement of guarantee application.

Q.60 I am an individual having taken loan from an eligible MLI for commercial purpose vehicle. Am I eligible for ECLGS facility ?

Ans: Yes, you are eligible, provided you meet the other eligibility criteria of the scheme.

Q.61 I am an individual having taken loan from an eligible MLI for commercial/ construction equipment. Am I eligible for ECLGS facility ?

Ans: Yes, you are eligible, provided you meet the other eligibility criteria of the scheme.

Q.62 I am an individual having taken loan from an eligible MLI for diagnostic equipment. Am I eligible for ECLGS facility?

Ans: Yes, you are eligible, provided you meet the other eligibility criteria of the scheme.

Q.63 I am an individual having taken loan against property from an eligible MLI. Am I eligible for ECLGS facility ?

Ans: You are eligible, provided the loan has been taken for your own business purpose and you meet the other eligibility criteria of the scheme.

Q.64 Whether Lease Rental Discounting is eligible for assistance under ECLGS?

Ans: No.

Q.65 I am an eligible borrower banking with MLI ‘A’ and MLI ‘B’. MLI ‘A’ has sanctioned me the eligible assistance of overall outstanding with MLIs ‘A’ and ‘B’ and obtained guarantee under ECLGS by indicating in the system that NOC has been obtained from MLI ‘B’, though it has actually not been. Now MLI ‘A’ is delaying disbursement and is seeking NOC from MLI ‘B’, which MLI ‘B’ is refusing. MLI ‘B’ has also sanctioned assistance to me as per my eligibility with them, but cannot disburse as it is not able to obtain guarantee under ECLGS. Finally, I am a sufferer not able to avail assistance under ECLGS due to tussle between the 2 MLIs. What should I do ?

Ans: On receipt of details, correction would be done by NCGTC to enable guarantee cover to MLI ‘B’ to the extent of its eligibility and guarantee cover to MLI ‘A’ to the extent of its eligibility under ECLGS. You will then be able to avail proportional loan from both the MLIs.

Q.66 I am an eligible MLI and have got some guarantees issued in respect of certain eligible borrowers. However, some of the details entered in the system are incorrect. Can the incorrect details entered be modified?

Ans: No, there are some validations in the system and hence modifications cannot be allowed. However, on specific request from registered (at the time of enrolment) mail id of the MLI, NCGTC would arrange to delete the guarantees issued and the MLI shall be able to apply afresh for the guarantee in respect of loan to such borrowers.

Q.67 Bureau outstanding has been entered incorrectly by MLI ‘A’ while taking guarantee cover in respect of an eligible borrower. The said borrower is also baking with MLI ‘B’, but it is not able to extend assistance to the borrower in view of incorrect entry of Bureau Outstanding. What should MLI ‘B’ do ?

Ans: NCGTC has already developed and circulated a module as per which the MLI ‘B’ can rectify the Bureau outstanding. It may, however, be noted that MLI ‘B’ should retain the document relating to Bureau outstanding as proof which would be required in case of claim settlement.

Q.68 Are Regional Rural Banks (RRBs) eligible as Member Lending institution under ECLGS?

Ans: Yes, all scheduled RRBs are eligible. It may be mentioned here that subsequent to amalgamation of certain RRBs which were previously scheduled, they are yet to be included in Second Schedule of RBI Act, but considering that RBI has already commenced the process to include them in the Schedule which may take some time and the fact that they were earlier scheduled, they are also eligible under ECLGS.

Q.69 It has been indicated under FAQ 12 that in case a borrower wishes to take from any lender an amount more than the proportional 20% (or 40% in case of Hospitality, Travel & Tourism and Leisure & Sporting sectors) of the outstanding credit that the borrower has with that particular lender, a No Objection Certificate (NOC) would be required from all other lenders. Is it necessary for the borrower to obtain NOC from all lenders even though the loan being taken from a particular lender is not the total outstanding across al MLIs ?

Ans: No, NOC would be required from the respective lenders whose share of ECLGS loan, the borrower wants to avail from one particular lender. It may, however, be necessary here for the particular lender to agree to provide assistance under ECLGS on behalf of these other lenders.

Q.70 An MLI ‘A’ has taken guarantee cover under ECLGS for a loan provided to a specific borrower. MLI ‘B’ takes over the said loan from MLI ‘A’ anytime during the repayment period. How will the guarantee provided under ECLGS be transferred from MLI ‘A’ to MLI ‘B’ and what would be the repayment schedule of the said loan under ECLGS with MLI ‘B’ ?

Ans: A page has been created on the portal for takeover cases wherein MLI ‘B’ has to enter certain details about the borrower being taken over from MLI ‘A’– it includes fields like borrower name, names of MLIs ‘A’ & ‘B’, CGPAN number of MLI ‘A’, loan account number, Management Certificate of having taken over the loan, etc. On submission of the same, NCGTC would verify the details of transfer and on approval, fresh CGPAN number is generated for MLI ‘B’ and a mail goes to the registered mail ids of the two MLIs about shift of guarantee from MLI ‘A’ to MLI ‘B’.

There would be no change in the repayment schedule, which should be as per scheme guidelines and both MLIs should ensure the same.

Q.71 What would be the procedure for filing and settlement of claims under ECLGS ?

Ans: NPA Marking

NPA marking module is available on portal under Claim & Settlement, wherein provision is made for NPA marking. MLI needs to mark NPA within 90 days of the account being classified as NPA.

Interim Claim

The MLI shall furnish the details of the account which would include date of NPA, amount in default, status of legal action etc. in the claim lodgment page available on the portal. The MLI may also be required to upload Management Certificate certifying certain details about the account. On submission of this claim, an e-mail shall go to the MLI that their claim has been lodged and NCGTC would initiate action to approve the claim request and arrange to pay 75% of the amount in default within 30 days of the claim date provided all requisite documents are submitted and the claim is found to be in order and complete in all respects. This shall be treated as Interim Claim. In view of the fact that date of default for facilities under non-fund based assistance could be on different dates, multiple interim claims shall be allowed to the MLI.

The MLI shall also furnish details of the recoveries made in the account and after adjusting such recoveries towards default amount relating to first charge and the legal costs incurred by them, remit the balance amount to NCGTC within 30 days, failing which MLI shall be required to pay the recovered amount along with interest at 2% over and above the prevailing repo rate from the date of recovery to the date of payment.

Final Claim :

On completion of the recovery Proceedings or till decree gets time barred, whichever is earlier, the MLI shall submit its claim for the balance 25% of the amount in default (net of recoveries, if not already remitted as above). Procedure for settlement of this Final Claim shall be the same as that of Interim Claim except that in the case of loans to individuals, Management Certificate shall be replaced by Statutory Auditor’s certificate.

Q.72 The scheme provides that all business enterprises / MSME borrower accounts with combined outstanding loans ……………… are eligible for the scheme. In this regard, whether MLI means such institutions which are registered with NCGTC or includes all lending institutions?

Ans: MLI here refers to all lending institutions.

Q.73 I am an eligible borrower banking with 2 lending institutions – one is registered with NCGTC and the other is not eligible or not registered with NCGTC. Can the registered MLI provide assistance under ECLGS against my outstanding with non-eligible/non-registered lending institution after obtaining NOC from it ?

Ans: Yes

Q.74 I am an eligible borrower banking with MLI ‘A’ and MLI ‘B’. If MLI ‘A’ provides m ECLGS facility on the outstanding amount of MLI ‘B’ also based on NOC reeived from it, do I have to create second charge on my securities available with MLI ‘B’.

Ans: No, second charge has to be created only on the securities available with the lender providing the ECLGS facility.

Q.75 A legal entity ‘A’ eligible under the scheme got merged into/taken over by another entity ‘B’ after February 29, 2020 and the account of entity ‘A’ has since closed. Will entity ‘B’ be eligible for facility under ECLGS to the extent of 20% of outstanding as on February 29, 2020 of entity ‘B’ alone or combined outstanding as on February 29, 2020 of entities ‘A’ & ‘B’.

Ans: The facility cannot be provided in respect of closed accounts. Hence, Entity ‘B’ would be entitled to 20% (40% in case of Hospitality, Travel & Tourism and Leisure & Sporting sectors) of outstanding of entity ‘B’ alone, subject to meeting of other eligibility criteria prescribed under the scheme.

However, if the constitution of entity ‘A’ gets changed to entity ‘B’ (and PAN gets changed) subsequent to February 29, 2020, then entity ‘B’ shall be eligible for assistance as entity ‘A’ would have become eligible, had it continued to be in existence.

Q.76 NCGTC had come out with an FAQ on June 29, 2020 wherein it was clarified that extension of any guarantee or obtention of any fresh guarantee for the facility under ECLGS shall make the guarantee void. In view of the practice being followed in some MLIs, they have taken extension on guarantees available from the borrowers while creating second charge. Can such accounts be exempted from being considered void, as clarification through FAQ was received only on June 29, 2020.

Ans: The Operational Guidelines of the scheme provide for second charge only on securities available with an MLI. Nowhere any mention of obtention of any guarantee was stipulated. The said FAQ was not an amendment to the guidelines, but just a clarification. MLIs who have obtained guarantee in any form may take necessary steps to get the same cancelled to ensure continuity of guarantee cover.

Q.77 I am an eligible borrower having availed loan under the scheme. Till which date can I avail disbursement?

Ans: Sanction under ECLGS 1.0 and ECLGS 2.0 is valid upto June 30, 2021 and disbursement out of fund based facility can be availed upto September 30, 2021. Facility under non-fund based portion can be availed during the 5 year tenor of facility sanctioned provided the first tranche has been utilized on or before September 30, 2021.

Sanction under ECLGS 3.0 is valid upto June 30, 2021 and disbursement under it can be availed upto September 30, 2021.

Q.78 I am a borrower banking with an eligible MLI ‘A’. My total turnover is Rs.250 crore (exclusive of taxes) for FY 2019-20 and is exceeding Rs.250 crore with taxes including GST. Whether I am eligible under the scheme?

Ans: Yes, the turnover limit is no more applicable.

Q.79 Are Self Help Groups eligible for assistance under ECLGS ?

Ans: No.

Q.80 I am an eligible borrower banking with an eligible MLI. However, sister concern of the borrower or my personal account has some outstanding over 60 days past due. Whether I am eligible for assistance under ECLGS?

Ans: Yes, eligibility of the borrower is to be seen, not of other entities/personal account.

Q.81 I am an eligible borrower having availed assistance under ECLGS. I have since repaid loans to the lender and am seeking release of partial/full securities. Can the lender release these securities?

Ans: The lender can release his charge, but continue to hold the securities on behalf of NCGTC till clearance of entire dues under the scheme.

Q.82 I am an eligible borrower banking with an eligible MLI. My present loan is covered under CGTMSE. Am I eligible for loan under ECLGS?

Ans: Yes. While, under the existing guidelines of CGTMSE, assets are exclusively charged to the MLI, CGTMSE is allowing creation of second charge under this specific scheme of ECLGS and has been sending clarifications to the M LIs as and when sought.

Q.83 Subsequent to the account turning NPA, when would legal action be considered as initiated on the part of MLI ?

Ans: Mere issue of recall notice shall not be construed as initiation of legal action. Legal action shall be considered as initiated upon filing of application in Lok Adalat/Civil Court/Revenue State Authority/DRT or after action pursuant to the notice issued under Section 13(4) of SARFAESI Act, 2002 or after admission of application under NCLT or commencement of arbitration proceedings or such other action as may be decided by NCGTC from time to time.

Q.84 I am an eligible borrower banking with an eligible MLI. Whether commercial or consumer outstanding of credit Bureau (as on February 29, 2020) shall be considered while grant of facility under the scheme ?

Ans: It could be cumulative outstanding, particularly in the case of individuals. With regard to commercial bureau outstanding, the outstanding under fund based facility should be considered. With regard to consumer bureau outstanding (basically for individuals), only the outstanding appearing under business purposes like commercial purpose vehicles, commercial and construction equipment, diagnostic equipment, etc. should be considered. For example, loan taken for non business purposes like housing loan, education loan, consumer loan, gold loan, credit card loan etc. taken by the borrower and appearing under the consumer bureau outstanding should not be considered to arrive at the Bureau outstanding. Credit bureau proof of the same should be retained by the MLI for verification, as and when sought.

Q.85 Whether an MLI can deny loan solely on the ground that Borrower’s credit rating or Bureau score is below the cut-off decided as per the internal policy of the MLI.

Ans: This scheme is designed as pre-approved loan with specified eligibility criteria and 100% guarantee by GoI. Therefore, coverage from NCGTC is not restricted by borrower’s credit rating or Bureau score.

Q.86 I have 3 proprietary concerns in my name with the same PAN. The Bureau outstanding shows my cumulative outstanding against the 3 units. Am I eligible for assistance in all the 3 units ?

Ans: Yes, provided the total outstanding under a single PAN is limited to 20% (40% in case of Hospitality, Travel & Tourism and Leisure & Sporting sectors) of the Bureau outstanding and the borrower units are, otherwise, eligible for assistance under the scheme.

Q.87 I am an eligible MLI having loan outstanding in respect of a proprietary concern as on February 29, 2020. The owner has changed due to old age or death and accordingly the PAN has also changed. Is the unit eligible under the new PAN?

Ans: No, eligibility is PAN specific.

Q.88 I am an eligible MLI having sanctioned cases under MUDRA scheme. When I was trying to lodge MUDRA cases for guarantee under ECLGS, it was showing that I have exhausted my limit. How is the eligibility limit for extending assistance to MUDRA borrowers assessed ?

Ans: In terms of the scheme guidelines, ECLGS facility can be extended to such of the MUDRA borrowers where, besides meeting the other eligibility criteria including loan outstanding as on February 29, 2020, the MLIs have reported the accounts on the MUDRA portal as on March 31, 2020 (reporting of outstanding loans to MUDRA being on quarterly basis). The eligibility / limit is, accordingly, assessed.

Q.89 I am an eligible MLI having extended assistance under ECLGS to an eligible borrower. The borrower has approached for release of existing full/partial security or replacement of security. Is it permitted?

Ans: Release/replacement of security, partially or fully, is a credit call to be taken by the MLI, subject to the condition that the interest of NCGTC is not compromised in any manner whatsoever, as per the scheme guidelines.

Q.90 I am an eligible MLI having extended assistance under ECLGS to an eligible borrower. The borrower has subsequently approached for enhancement of facility/sanction of additional facility. Is it permitted?

Ans: NCGTC may be intimated, as provided in the Operational Guidelines. No prior approval is needed. Enhancement of credit facility / sanction of additional credit facility is a credit call to be taken by the MLI, subject to the condition that the interest of NCGTC is not compromised in any manner whatsoever, as per the scheme guidelines.

Q.91 I am an eligible borrower banking with an eligible MLI. My loan outstanding (as on February 29, 2020) with the MLI is secured on the basis of second charge on certain assets. What would be the security to be created on ECLGS funding?

Ans: As per the scheme guidelines, it is second charge on existing assets. Accordingly, in case where second or subservient charge is already created, pari passu second charge may be created.

Q.92 I am an eligible borrower banking with an eligible MLI. My loan outstanding in one of the Credit Bureaus is showing DPD higher than 30/60 days as on February 29, 2020. However, this is incorrect as I had paid on time and the DPD as on February 29, 2020 was 30/60 days or less and I have submitted the detailed accounts to my MLI. Am I eligible for assistance under ECLGS?

Ans: The scheme guidelines stipulates checking of such details with a Credit Bureau. It, however, does not specify which Bureau. Mistakes can happen at the Bureau also or in reporting of data to the Bureau. It is, therefore, the duty of the MLI to satisfy itself on the eligibility of the borrower as per the scheme guidelines and preserve such documents, which may be required at the time of claim settlement, if any. Efforts may also be made to rectify such issues with the respective Credit Bureau.

Q.93 Whether outstanding NCDs/ Debentures as on February 29, 2020 are to be taken into account for arriving at the outstanding debt ceiling as specified in the scheme?

Ans: For better clarity, please read FAQ 102.

Q.94Whether limits sanctioned under bill discounting facilities (purchase wise or seller wise), which is short term but rolling over facility, is eligible for ECLGS assistance based on the outstanding debt as on Feb 29, 2020.

Ans: Bill discounting limits are given to purchasers as well as sellers. Such limits given to purchasers only replaces the debts due to their suppliers and does not affect their working capital cycle. Hence, only bill discounting limits given to suppliers will be eligible for ECLGS assistance, based on outstanding facilities as on Feb 29, 2020 subject to it meeting other eligibility norms.

Q.95 I am an eligible borrower who was banking with MLI ‘A’. The MLI ‘A’ has assigned major portion of the loan sanctioned to me to MLI ‘B’ through securitisation and the loan remaining with MLI ‘A’ is marginal. Also, the security that was available with MLI ‘A’ has been transferred to MLI ‘B’ and there is no security available with MLI ‘A’ now. Whether MLI ‘A’ can sanction upto 20% (40% in case of Hospitality, Travel & Tourism and Leisure & Sporting sectors) of my outstanding facility across MLI ‘A’ & ‘B’ as on February 29, 2020 after obtaining NOC from MLI B’ ?

Ans: Yes, MLI ‘A’ can do so provided the borrower is otherwise eligible and it is an existing customer of MLI ‘A’. However, if 100% of the loan is assigned by MLI ‘A’ to MLI ‘B’ and there is no outstanding of the borrower with MLI ‘A’, then MLI ‘A’ shall not be able to provide facility under ECLGS to the said borrower. There is no stipulation of availability of security in the scheme.

Q.96 Whether loans to Joint Liability Group (JLG) under MUDRA scheme eligible for assistance under ECLGS?

Ans: JLG is not an entity and no loans are extended to J LG per se. Under the J LG model of lending, individuals are given loans and as per the ECLGS guidelines, individuals are eligible.

Q.97 I am an individual running a proprietary concern. Am I eligible for ECLGS facility both as a proprietary concern and also as an individual?

Ans: PAN would be same for the proprietary concern and the individual. If both meet the eligibility criteria of the scheme and original assistance by the proprietary concern was used for business purposes and original assistance by the individual was used as prescribed under the scheme, both would be eligible for assistance under ECLGS but they shall have to apply separately.

Q.98 I am an eligible borrower under ECLGS. However, I am not required to prepare annual accounts and hence I do not have audited/ finalized turnover details for FY 2019-20. What details are required from me for getting the benefit under ECLGS?

Ans: In terms of the scheme guidelines, the MLI shall obtain a declaration from such borrowers regarding turnover. The MLI should satisfy itself in this regard.

Q.99 I am an eligible borrower banking with an eligible MLI. My loan accounts were less than 30/60 days past due, but small overdues exceeding 30/60 days past due were there in my (borrower’s) credit card/savings account/current account as on February 29, 2020 which were appearing in the Credit Bureau report and making the account ineligible for assistance under Emergency Credit Line Guarantee Scheme (ECLGS). Whether any exemption can be granted by the MLIs in such cases?

Ans: As an exception, such cases can be considered eligible for assistance under ECLGS, if overdues in respect of credit card/savings account/current account of the borrower does not exceed 1% of the loan amount (i.e. GECL amount) extended under ECLGS facility, the overdue amounts are regularised prior to assistance being provided under ECLGS and are within the materiality concept being followed by the MLI concerned.

Q.100 In a securitization deal, the pooled assets of MLI ‘A’ have been assigned to a Trust (not an MLI), acting through a Trustee, through direct assignment or through Pass Through Certificate, and the beneficiary is another eligible MLI under the scheme. Please advise whether the purchasing Trust would be eligible for transfer of Guarantees in its name in respect of such pooled assets ?

Ans: Yes.

Q.101 What will be the security on credit extended under GECL Scheme in respect of small loans.

Ans: In continuation of FAQ No.23, it is further clarified that as per decision taken on September 08, 2020, the stipulation for creation of second charge has been waived in respect of all loans up to Rs.25 lakh (outstanding loan as on February 29, 2020 plus loan sanctioned under GECL), provided the MLI ensures to safeguard the interests of NCGTC and in this regard obtains a suitable undertaking (as per draft format to be provided by NCGTC and hosted/to be hosted on the website) from the borrower.

Q.102 I am an eligible borrower with outstanding loans from an eligible MLI and debentures from an investor. Am I eligible for ECLGS facility on debentures also as this is a type of debt, though subordinate to the senior debt?

Ans: The Scheme is limited to lending institutions covered under the Scheme, and the ECLGS facility is eligible only on outstanding debt. Hence, ECLGS would be eligible on debentures only if they are either Non-convertible or Optionally Convertible and have been raised from a lending institution covered under the Scheme, and not from investor(s)/investing company. In case of Optionally Convertible debentures, the guarantee on GECL shall, however, cease to be operative on such debt being converted to equity during the currency of the guarantee coverage.

Q.103 I am an eligible MLI having extended facility under ECLGS to an eligible borrower. In terms of the scheme guidelines, security has to be created within 3 months. Can extension be granted on the same?

Ans: As indicated at FAQ 101, stipulation of creation of second charge has already been waived in respect of all loans up to an aggregate of Rs.25 lakh, inclusive of the original loan as well as the additional credit provided under ECLGS.. Further, certain States have already started the facility of e-stamping. Accordingly, MLIs need to make all efforts to create the security within the stipulated time in all cases where creation of security is required under ECLGS.

However, considering that the sanction under the scheme is valid upto June 30, 2021 and keeping the 3 months period allowed for creation of security in view, time up to September = 30, 2021 will be allowed to the MLIs to create the stipulated security. MLIs may, accordingly ensure that the stipulated security is created prior to the account turning NPA or up to September 30, 2021, whichever is earlier, failing which claims shall not be settled and the guarantee shall be considered as void.

Q.104 Whether loans given against FDs/Mutual Funds be considered eligible for ECLGS support?

Ans: Yes, provided that the various aspects of the scheme guidelines are complied with. The MLI should ensure to create charge /lien on such assets as per the scheme guidelines to safeguard the interest of NCGTC.

Q.105 Whether GECL loans provided under ECLGS are eligible to be restructured without downgrade as per RBI guidelines of August 06, 2020 ?

Ans: No, as only credit outstanding as on March 1st, 2020 is eligible for restructuring under RBI’s Resolution framework of August 6, 2020. In case GECL loans are restructured, they shall not be eligible for coverage under the scheme and the Guarantee shall become void.

Q.106 An eligible borrower has obtained loan under ECLGS from an eligible MLI ‘A’. Whether the said borrower can avail enhanced/fresh loan from the same MLI ‘A’ or another MLI and extend its first charge on the security available?

Ans: The borrower can avail enhanced/fresh loan from the same or another MLI against extension of first charge / creation of pari-passu first charge on the security available..

Q.107 I am a borrower banking with an eligible MLI ‘A’. Due to some incorrect accounting or inefficiency of MLI ‘A’, I was marked as SMA-2/NPA as on February 29, 2020. Whether

MLI can consider loan to me under ECLGS ?

It is for the MLI to check the eligibility of the borrower based on all facts available with it and rectify the mistakes so that an eligible borrower is not denied benefit under the scheme due to inefficiency or incorrect accounting at the end of MLI. In such cases, the MLI concerned which had reported the borrowers to CRILC or any other Credit Bureau as SMA-2 or NPA shall have to certify that such reporting was erroneous or due to purely technical reasons.

Q.108 What is ECLGS 1.0, ECLGS 2.0 & ECLGS 3.0

Ans: ECLGS-1.0 refers to the scheme for providing 100% Guarantee coverage by NCGTC to its Member Lending Institutions against extension of eligible credit to its existing borrowers whose total credit outstanding (fund based) across all lending institutions and days past due as on February 29, 2020 was upto Rs.50 crore and upto 60 days respectively.

ECLGS-2.0 refers to the scheme for providing100% Guarantee coverage by NCGTC to its Member Lending Institutions against extension of eligible credit to its existing borrowers in the 26 stressed sectors identified by the Kamath Committee on Resolution Framework and the Healthcare sector whose total credit outstanding (fund based) across all lending institutions and days past due as on February 29, 2020 was above Rs.50 crore and not exceeding Rs.500 crore and upto 60 days respectively.

ECLGS 3.0 refers to the scheme for providing 100% guarantee coverage by NCGTC to its Member Lending Institutions against extension of eligible credit to its existing borrowers in the Hospitality, Travel & Tourism and Leisure & Sporting sectors whose total credit outstanding (fund based) across all lending institutions and days past due as on February 29, 2020 was upto Rs.500 crore and upto 60 days respectively.

Q.109 I am an eligible borrower with total credit outstanding across all lending institutions above Rs.50 crore and below Rs.500 crore as on February 29, 2020. Am I eligible for assistance under the scheme of ECLGS?

Ans: You are eligible for assistance under ECLGS 2.0 provided you fall in the 26 stressed sectors identified by the Kamath Committee on Resolution Framework or the Healthcare sector, your DPD as on February 29, 2020 was upto 60 days and you meet the other eligibility criteria prescribed under the scheme.

You are eligible for assistance under ECLGS 3.0 provided you belong to the Hospitality sector, Tourism & Travel sector or Leisure & Sporting sector and have DPD of upto 60 days as on February 29, 2020.

Q.110 I am an eligible borrower in the 27 identified industry sectors for assistance under ECLGS 2.0. How much fund based and / or non-fund based facility am I eligible under the scheme?

Ans: As per the scheme guidelines, you are eligible for total assistance upto 20% (40% in case of Hospitality, Travel & Tourism and Leisure & Sporting sectors) of your credit outstanding across all lending institutions as on February 29, 2020. This assistance could be in the form of fund based facility, non-fund based facility or a mix of the two. Credit decision of how much would be fund based and/or how much would be non-fund based would rest with the MLI.

Q.111 What shall be the repayment period of loans under ECLGS 2.0?

Ans: For fund based facility granted under ECLGS 2.0, the repayment period shall be 5 years, including moratorium period of 1 year. No repayment period is prescribed for non-fund based facility in view of its nature, but the guarantee cover on such facility shall expire at the close of 5 years from the date of first disbursement/utilization out of the sanctioned fund based /non-fund based facility, whichever is earlier. It may further be noted that first tranche out of the sanctioned non-fund based facility should be utilized on or before June 30, 2021 to enjoy guarantee cover on the sanctioned non-fund based facility.

Q.112 I am an eligible MLI having sanctioned assistance to an eligible borrower under ECLGS. However, I have not yet obtained guarantee cover from NCGTC. Please advise till which date can I apply for guarantee cover ?

Ans: The facility of ECLGS shall be available for sanction till June 30, 2021or till guarantees for an amount of Rs.3 lakh crore are issued by NCGTC, whichever is earlier. Accordingly, you should avail of the guarantee cover at the earliest or else you may lose the same if the amount of guarantees issued under the scheme crosses the mark of Rs.3 lakh crore.

Q.113 I am an educational institution cum hospital banking with an eligible MLI. My total fund based credit outstanding across all MLIs as on February 29, 2020 was upto Rs.500 crore and days past due as on February 29, 2020 was upto 60 days. Whether I am eligible for assistance under ECLGS 2.0 ?

Ans: Yes, you are eligible for assistance under ECLGS to the extent of your fund based outstanding in the Healthcare sector as assessed by the MLI, provided you meet the other eligibility criteria prescribed under the scheme.

Q.114 I am an eligible borrower banking with an eligible MLI. I am enjoying fund based facility of Rs.500 crore besides some non-fund based facility. Am I eligible for assistance under ECLGS 2.0 ?

Ans: The maximum outstanding of Rs.50 crore under ECLGS 1.0 & Rs.500 crore under ECLGS 2.0 & ECLGS 3.0 refers to fund based outstanding. Hence, you are eligible for assistance under ECLGS 2.0.

Q.115 I am an eligible borrower banking with an eligible MLI. As per guidelines of ECLGS 2.0, I am eligible for credit facility of upto 20% of my outstanding across all MLIs as on February 29, 2020. What would be the proportion of fund based and non-fund based facility that I will be entitled to?

Ans: This is a credit call to be taken by the MLI based on requirement of the borrower.

Q.116 I am a Housing Finance Company (HFCs) with exposure of lending to MSMEs. Am I eligible under ECLGS?

Ans: Yes, HFCs are eligible. However, please see FAQ 44 in this regard which clarifies that only MSME borrowers of HFCs are eligible.

Q.117 I am an eligible borrower having availed assistance under ECLGS 1.0. Am I eligible for coverage under ECLGS 2.0 ?

Ans: No.

Q.118 I am an eligible borrower banking with an eligible MLI. As per guidelines of ECLGS 2.0, I have been sanctioned some fund based and some non-fund based facility. Are the two interchangeable?

Ans: No, the two facilities are not interchangeable and shall be fixed at the time of sanction by the MLI.

Q.119 I am an eligible borrower having availed assistance under ECLGS 1.0. Can I avail assistance under ECLGS 2.0 also ?

Ans: No. A borrower having availed assistance under ECLGS 1.0 is not eligible for assistance under ECLGS 2.0. Further, non-fund based facility is not eligible for borrowers under ECLGS 1.0.

Q.120 As the maturity date of a non-fund based facility could be different from the date of NPA of a fund based facility, whether MLI would be allowed for filing of separate claims for the fund based and non-fund based facility in case of default and NPA ?

Ans: Separate claims would be eligible for filing based on the date of NPA of the two facilities. Moreover, as the maturity date of various tranche of utilization under non-fund based would be different from each other and also different from the date of NPA due to default in fund based facility or any one of the non fund based facility, provision has been made to allow multiple interim claims based on amount of default arising from time to time under non fund based facility only.

Q.121 I am an eligible borrower having diversified activities and fund based outstanding of Rs.20 crore in one or more of the 27 identified industry sectors for assistance under ECLGS 2.0 and total fund based outstanding for all businesses across all MLIs at Rs.200 crore. How much loan would I be eligible under ECLGS 2.0?

Ans: As your outstanding in the identified sectors under ECLGS 2.0 is only Rs.20 crore, you shall be eligible for only upto 20% of Rs.20 crore, i.e. Rs.4 crore.

As an extension to the above, even if borrowers have fund based outstanding in the select 27 sectors within Rs.500 crore but their total fund based outstanding exceeds Rs.500 crore, they shall be ineligible for assistance under ECLGS 2.0.

Q.122 What is the margin prescribed for non-fund based facility?

Ans: This is left to the discretion of the MLI.

Q.123 As the last date of sanction of assistance is 31.03.2021 and last date of disbursement is 30.06.2021, can disbursement out of fund based facility or issuance of LC/BG under non-fund based facility happen after 31.03.2021?

Ans: The last date of sanction and disbursement of fund based facility has been modified to June 30, 2021 and September 30, 2021 respectively. Entire disbursement out of fund based facility should happen on or before September 30, 20201. Utilization of at least first tranche under non-fund based facility under ECLGS 2.0 should happen on or before 30.09.2021. Utilisation of further tranches under non-fund based facility under ECLGS 2.0 can happen subsequently during the currency of the guarantee cover.

Q.124 What would be the applicable commission on non-fund based facilities extended under ECLGS 2.0 ?

Ans: This would be as per the existing guidelines of an MLI.

Q.125 What would be the interest rate chargeable on loans provided under ECLGS 2.0?

Ans: Interest rate has been capped at 9.25% p.a. for Banks and FIs and 14% p.a. for NBFCs. Interest rates for non-MSMEs would be linked to Marginal Cost based Lending Rate (MCLR) while interest rates for MSMEs would be linked to External Benchmark Lending Rate (EBLR), but the cap prescribed should not be exceeded.

However, in case the MCLR exceeds 9.25% during the tenor of the guarantee, a view would be taken by the Management Committee on revising the cap specified.

Q.126 Whether individuals are eligible under ECLGS 2.0 ?

Ans: No.

Q.127 I am a Housing Finance Company (HFC) registered with NCGTC under ECLGS. Am I eligible for extending assistance under ECLGS 2.0 ?

Ans: In partial modification of FAQ Numbers 44 & 116, HFCs are eligible Member Lending Institutions under ECLGS (ECLGS 1.0, 2.0 & 3.0) for extending 100% guaranteed loans to eligible borrowers within limits specified under the scheme guidelines.

Q.128 I am a borrower banking with an eligible MLI and am interested to avail assistance under ECLGS. I am meeting all the norms of eligibility, but number of days past due in my account as on date is over 90 days. Am I eligible for assistance under ECLGS, in view of Sr. No. 19 of Operational Guidelines of the scheme which states that “The borrower account, otherwise eligible under the scheme, should not be an NPA as on the date of sanction/disbursement”?

Ans: In normal course of business, accounts which are more than 90 days past due would require the MLI to take legal action against such accounts and file claims with NCGTC. Hence, in terms of prudent banking, a borrower with DPD over 90 days would not be eligible for sanction/disbursement under ECLGS.

Q.129 I belong to the 27 identified industry sectors for assistance under ECLGS 2.0, but my lender feels otherwise. Who shall decide my eligibility under the scheme?

Ans: The scheme parameters have been clearly defined in the Operational Guidelines of the scheme and FAQs are being issued from time to time for further clarification. It is the responsibility of the MLI to check the eligibility of the borrower and satisfy itself, as the guarantees are issued automatically based on submissions of the MLI.

Q.130 I have got my original loan with an eligible MLI restructured under the present RBI scheme as per which the account need not be downgraded or classified as NPA. Will I be eligible for facility under ECLGS?

Ans: Yes, you shall be eligible provided you meet all the eligibility parameters of the scheme.

Q.131 Whether RBI has issued any guidelines on the new scheme ECLGS 2.0, and if so, what are they?

Ans: ECLGS 2.0 is not a separate scheme, but a window within the ECLGS scheme launched on May 23, 2020. RBI has previously clarified that all loans sanctioned under Guaranteed Emergency Credit Line (GECL) and covered under ECLGS shall carry zero risk weight. Subsequent to introduction of ECLGS 2.0 within ECLGS, RBI has, in its December 04, 2020 statement, informed about extension of sectors and synergy with ECLGS 2.0 of funds from RBI under on tap TLTRO.

Q.132 Whether MLIs can charge interest rate lower than that arrived at as per EBLR (for MSMEs) or MCLR (for non-MSMEs) ?

Ans: Yes.

Q.133 I am a borrower banking with an eligible MLI. As on 28.02.2021, I had an outstanding loans against 6 commercial vehicles and have received the eligible ECLGS facility. My original loan against one of the commercial vehicles is getting closed and I want NOC to sell the vehicle. Please advise if I can get it from my MLI.

Ans: The MLI would issue NOC in respect of the vehicle against which the original loan has been repaid, provided you pay the proportionate amount of ECLGS facility availed and the MLI is satisfied with the level of assets available with it to secure the balance loan including loan under ECLGS. Similar approach needs to be adopted by MLIs in case of multiple loans against separate identifiable securities.

Q.134 What is ECLGS 3.0?

Ans: ECLGS 3.0 refers to the scheme for providing 100% guarantee coverage by NCGTC to its Member Lending Institutions against extension of eligible credit to its existing borrowers in the Hospitality sector, Travel & Tourism sector and Leisure & Sporting sector, whose total fund based outstanding across all borrowers and days past due as on 29.02.2020 was not exceeding Rs.500 crore and upto 60 days respectively.

Q.135 What is eligible credit facility under ECLGS 3.0?

Ans: Under ECLGS 3.0, the borrowers meeting the criteria indicated at FAQ 134 are eligible for additional credit upto 40% of their total loan outstanding (fund based) as on February 29, 2020, subject to meeting other norms prescribed under the scheme. Such of these borrowers who have already availed assistance under ECLGS 1.0 or ECLGS 2.0 shall be eligible for additional credit upto 20% of their total loan outstanding (fund based) as on February 29, 2020.

Q.136 What activities are covered under ECLGS 3.0 ?

Ans: Eligible activities are businesses in the Hospitality sector (all kinds of hotels, restaurants, canteens, caterers, marriage halls etc.), Travel & Tourism sector ( tour operators, tour assistance activities, adventure tourism etc.) and Leisure & Sporting sector (Entertainment or recreational activities including amusement parks, theatres etc.)

Q.137 What shall be the repayment period of loans under ECLGS 3.0?

Ans: Under ECLGS 3.0, only fund based facility shall be eligible for which the repayment period shall be 6 years including moratorium period of 2 years.

Q.138 I am an eligible borrower having availed assistance under ECLGS 1.0 or ECLGS 2.0. Can I avail assistance under ECLGS 3.0 also ?

Ans: Yes. The facility being provided under ECLGS 3.0 should be treated separately. Such of the eligible borrowers who have availed assistance under ECLGS 1.0 or 2.0 are also eligible for assistance under ECLGS 3.0, but they shall be eligible for only additional credit upto 20% of their total loan outstanding (fund based) as on February 29, 2020. . Separate loan account is to be maintained for ECLGS 3.0.

Q.139 Who can provide answers to any further queries?

Ans: Please address your queries/suggestions to [email protected]

6. Draft Format of of undertaking to be executed by lending institution

xxxxx

Annexure II 

{Draft of undertaking to be executed by lending institution}

To

The Chief Executive Officer,
National Credit Guarantee Trustee Company,
SME Development Centre, 2nd floor,
Plot No.C-11, ‘G’ Block
Bandra Kurla Complex, Bandra (East)
Mumbai-400051

Dear Sir,

In consideration of the National Credit Guarantee Trustee Company (hereinafter referred to as “the Company” which expression shall, unless repugnant to the context, also include its successors and assigns), agreeing to guarantee under the Emergency Credit Line Guarantee Scheme (a copy of the scheme guidelines is hereto annexed and which is hereinafter referred to as “the Scheme”), certain credit facilities granted by us to eligible borrowers,  we ______________________________________ (Name of lending institution), do hereby agree with the Company as follows :

1. That the provisions of this Undertaking shall be in addition to, and not in derogation of, the provisions of the Scheme and the guidelines and instructions issued by the Company from time to time.

2. That the provisions of the Scheme and such modifications as may be made thereto from time to time shall be deemed to be incorporated in this Undertaking and shall be binding on us, in so far they relate to the credit facilities granted by us to borrowers which have been or are eligible for being guaranteed thereunder.

3. That the provisions of the Scheme and this Undertaking shall be applicable to or in relation to all credit facilities eligible for guarantee under the Scheme.

4. That we shall claim the benefit of the guarantee under the Scheme only in respect of the credit facilities specified in the Scheme and to the extent provided therein and that we shall for this purpose obtain and preserve affidavits or other documents from the borrowers concerned that the borrowers in respect of whom the benefit of the guarantee has been or is to be provided by the Company are eligible for the guarantee under the Scheme. If found otherwise, at any stage, the Company shall be at liberty to take such action as it may deem fit.

5. That the additional credit facilities being covered under this scheme shall rank pari passu with the existing credit facilities in terms of cash flows and security, with charge on the assets financed under the Scheme to be created within a period of three months from the date of disbursal. No additional collateral shall be asked for the credit facility specified in the scheme.

6. That we agree that a borrower who ceases to be so eligible will, in accordance with and subject to the provisions of the Scheme, be excluded from the benefit of any guarantee and that for this purpose, we shall obtain from the borrower concerned every quarter or at such other intervals as may be required by the Company, such information declarations as may be deemed necessary.

7. That the books of accounts, ledgers and other documents relating to eligible credit facilities covered by the Scheme shall, as far as may be practicable, be segregated and maintained in a proper manner so as to facilitate such scrutiny or inspection as may be undertaken by the Government of India (GOI) or by the Company or by any other person nominated by the Company in this behalf.

8. That we undertake to make available to the Officers of GoI, Company or any agency which may be specified by the Company in this behalf, as the case may be, all our books and records and provide such other facilities as may be required for such scrutiny and inspection.

9. That we shall furnish to the Company a statement in a form and manner required by the Company, showing the outstanding balances with break-up of principal and interest / other expenses details in respect of the eligible credit facilities covered under the Scheme, as and when required by the Company.

10. That we shall furnish to the Company thereafter such statements or information as the Company may require about the eligible credit facilities covered under the Scheme in such form and manner, and at such intervals, as may be required by the Company.

11. That in order to enable the Company to ascertain whether a claim made on it is on account of any eligible credit facility which has been so covered, we shall preserve in good order the detailed statement or statements referred to in clauses 7, 8 and 9 hereof as also the relevant documents relating to the said credit facility.

12. That we shall, in respect of every eligible credit facility covered under the Scheme, exercise due diligence in recovering the dues, and safeguarding the interest of the Company. We shall, in particular, refrain from any act of omission or commission either prior to or subsequent to invocation of guarantee, which may adversely affect the interest of the Company / Trust as the guarantor.

13. That for invoking the guarantee under the Scheme, we undertake to submit to the Company an application in such form as may be specified by the said Company and furnish such other information as may be required of us by the Company.

14. That we shall secure for the Company or its appointed agency the right to list the defaulted borrowers names and particulars on the web site by the Company.

15. That we give consent to furnish information to various Credit Information Bureaus/ other institutions that the Company may demand from time to time with regard to the eligible credit facilities covered under the Scheme.

16. That notwithstanding anything to the contrary contained in the Scheme, if any loss occurs in respect of an account covered by the Scheme owing to actions / decisions taken contrary to or in contravention of the guidelines issued by the Company, we shall not make and shall not also be entitled to any claim on the Company in respect of the said account and the Company may take such action, as it may deem fit.

17. That all applications, documents, receipts, statements and other papers shall be signed on behalf of our institution by the Chief Executive Officer or by other persons in our employment who shall be deemed to be authorised by us to sign all such applications, documents, receipts, statements and other papers and that any irregularity in the signature, or want of authority of the persons so signing shall not in any way affect or prejudice the rights of the Company or affect our liability in respect thereof.

18. That we certify that the information as provided in Appendix I of this Undertaking (attached) is proper and correct and we undertake to provide information as required in Appendix II of this Undertaking (format attached) on the 1st and 15th of each month from the date of availment of benefits under the scheme till the close of the scheme

19.That all data, including applications, periodical returns, funds transfer, updated or transferred to the Company in the electronic form, shall be deemed to be signed on behalf of our institution by the Chief Executive Officer or by other persons in our employment who shall be deemed to be authorised by us to sign all such applications, documents, receipts, statements and other papers and that any irregularity in the use of member-id, or want of authority of the persons so signing shall not in any way affect or prejudice the rights  of the Company or affect our liability in respect thereof.

20. That we shall introduce and follow such accounting arrangements as may be necessary or as may be required by the Company or take such other steps as may be necessary or expedient for protecting its interests in respect of the outstanding balances on account of credit facilities in regard to which the Company’s guarantee is invoked by us.

21. That this Undertaking shall take effect from the date of signature.

22. That the stamp duty payable on this Undertaking shall be borne by us.

Yours faithfully,

For and on behalf of _____________________

Signature _____________________________

Name _______________________________­

Designation ___________________________

Place :_______________________

Date : _______________________

Note :

(i) This Undertaking is to be executed by the lending institution for getting itself registered as Member Lending Institution (MLI) to avail of the guarantee facility extended by the Company.

(ii) This Undertaking is to be executed by an official authorised by appropriate authority of the lending institution.

(iii) This Undertaking is to be stamped as an agreement. The liability to stamp duty will depend upon the place where it is executed and/ or acted upon.

(iv) Kindly enclose resolution from your Board of Directors, approving enrolment as member of National Credit Guarantee Trustee Company.

(Republished with Amendments)

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26 Comments

  1. Jayesh says:

    I have query on below point – is it anywhere mentioned in circular that borrower otherwise eligible under scheme should not be NPA as on the date of sanction or disbursement ?
    19. Status of the borrower account on the date of sanction / disbursement

    The borrower account otherwise eligible under the scheme should not be an NPA as on the date of sanction / disbursement.

  2. mukesh goel says:

    Sir
    Our bussiness is for manufacturing LED BULBS and LED LIGHTS . Sir we comes in ECGLS 2.0 scheme. Sir my bank wants clerification that wether our industry comes in 26 specified kamath comettie list .my bank want certificate from NCGTC in this regards .and not allowing us this facilities. Pl advise. My contect no. Is 8010870169.

  3. Subuhi says:

    If the proprietor of a firm availing GECL expires and the legal heir wants to take over the liability what is the procedure to be adopted for transfer of insurance cover?

  4. Jayanthi says:

    We have availed following facilities from our bank
    WCTL – 4500000
    CC Limit – 7000000
    ECGL -. 22,00,000
    Collateral with bank
    One property réalisable value
    1,12,68,168
    Another réalisable value 49,00,000/-
    We gave a proposal to Bank saying we will close WCTL and bring down CC Limit to 35 lakhs by paying 80,00,000/- and asked bank to release first property.
    But the bank is refusing to release property of higher value, citing ECGL loan exposure, for which Govt has extended guarantee.
    Is the bank right in doing so, or should we approach higher authority to get property of higher value released ?

  5. Chetan Shah says:

    I think the additional facility is guaranteed by govt so it has a “Second Charge” and not pari passu as mentioned in point 11:
    “That the additional credit facilities being covered under this scheme shall rank pari passu with the existing credit facilities…..”

  6. Prathiba chopra says:

    e are MSME manufacturer of plastic products .we having Term Loan from NBFC. On may our total outstanding for the term loan was 14 to 20 EMI as we have taken the financed for 5 machines .Well we have also taken the moratorium March and April 2020.In May 2020 same assets have been refinanced by NBFC as we have faced the financial crises. Now my query is that can we get the fund under the ECLGS (“Scheme) .

  7. Ankit Gambhir says:

    Provision to the bank for the calculation of the interest rate on the loan are also applicable to the NBFC.
    Minimum rate of interest at which NBFC can lend.

  8. Ankit Gambhir says:

    Is the provision applicable to the bank for calculating the interest rate on the loan also apply to the NBFC.
    Kindly tell the minimum rate on which NBFC can lend.

  9. Goutam Bandyopadhyay says:

    In case of takeover of loans in the month of March 2020 by some other bank, what is going to be the status of availing ECLGS.
    The old banking is saying as on the date of declaring the scheme the company is not having business relation & new bank is saying on the date of cut off 29/02/2020 the company was not banking with them and o/s balance Nil.

  10. Shreepal says:

    For ECLGS laon do we need to do Registration and for the same will Charges be applied for Stamp duty and Registration. If Yes how much and if No, can you share any notification…

  11. Vimal Solanki says:

    Are any kind of processing charges/stamp duty levied for this scheme. If yes can anyone please provide the breakup..??

  12. SANJAY KULKARNI says:

    Our Company’s CIBIL outstanding balance report as on 29 Feb 2020 shows incorrect figure and hence we are deprived of from getting the benefits of the ECLGS scheme, how we can correct CIBIL report on urgent basis ? No quick response from CIBIL in this regards
    To whom we should complaint in this regards

  13. Suresh Kewalramani says:

    We have been banking with Saraswat Coop Bank Ltd a scheduled commercial bank for last 40 years
    We approached the bank for assistance under the ECLGS scheme
    We have been told by the bank that Cooperative banks are not authorised to sanction assistance under this scheme
    Can we approach any nationalised bank for this assistance and are they oblieged to give the money

  14. Krishna s.Hogade says:

    Co-oparetive banks आपत्कालीन क्रेडिट लोन साठी पात्र आहेत का?

  15. R T says:

    What happens if the partners/guarantors are changed post 29th Feb and the Bank has concluded the renewal with the new partners and guarantors? Also, in some cases the renewals are processed releasing some collateral post 29th Feb’20?

    Can the Bank lend in this scenario?

  16. KVGRao says:

    The threshold limit of turnover has been raise from Rs.100 crores to Rs.250 crores for medium enterprises. Whether this is amendment is applicable for ECLGS.

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