Launched by Government of India as a special scheme in view of COVID-19 crisis
To provide 100% guarantee coverage to Banks and NBFCs to enable them to extend emergency credit facilities to Business Enterprises / MSMEs in view of COVID-19 to meet their additional term loan/additional working capital requirements.
The amount of Emergency Credit line to be extended to Business Enterprises / MSMEs would be upto 20% of total outstanding as on Feb 29,2020.
100% Guarantee Coverage for the additional funds sanctioned under the Emergency Credit Line Scheme.
Business Enterprises / MSMEs with outstanding loan of upto Rs.50 crore as on February 29, 2020 and turnover of upto Rs.250 crore in FY 2019-20.
Interest rate charged is capped at 9.25% for banks and 14% for NBFCs.
Maximum tenure of 4 years from the date of disbursement.
Moratorium period on Principal amount is 12 months.
No charges / guarantee fees to be charged by MLIs/NCGTC.