Name of the Facility

Guaranteed Emergency Credit Line (GECL)

Facility Type

Term Loan

Eligible Borrowers

• All MSME borrower accounts with combined outstanding loans across all MLIs of up to Rs. 25 Cr. as on 29.2.2020, and annual turnover of up to Rs. 100 Cr. in FY 2019-20.
• Loans provided to Business Enterprises / MSMEs constituted as Proprietorship, Partnership, registered company, trusts and Limited Liability Partnerships (LLPs) shall be eligible under the Scheme.
• The Scheme is valid only for existing customers on the books of the MLI.
• Borrower accounts should be classified as regular, SMA-0 or SMA-1 as on 29.2.2020. Accounts classified as NPA or SMA-2 as on 29.2.2020 will not be eligible under the Scheme.
• 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 in individual capacity will not be covered under the Scheme.

Loan Eligibility Calculation

Credit under GECL would be up to 20% of the borrower’s total outstanding credit up to Rs. 25 crores, excluding off-balance sheet and non-fund-based exposures, as on 29th February 2020, subject to the borrower meeting all the eligibility criteria. The maximum loan amount that can be extended under this facility is Rs. 5 cr.

Tenor

• Loanstohave 4 years (48 months) tenor with moratorium of 12 months on Principal repayment.
• In moratorium of 12 months customer needs to serve interest.
• Post completion of moratorium, EMI repayment will start & will be amortised in remaining 36 months.

Interest Rate / Type

ROI to be capped @maximum 14%p.a.

Processing Fees

NIL

Pre-Payment Charges

NIL

Guarantee Fee payable to credit guarantee trust

NIL

Scheme Validity

This scheme is valid till 31st October 2020 or Rs. 3 Lac Crores is utilized by lending institutions, whichever is earlier. Or during any extension announced by the Government in future.