Interest Rate and Tenure under Emergency Credit Line Guarantee Scheme
- Additionally, the ECLGS has a cap on interest rates: For banks and other financial institutions, 9.25% and for Non-Banking Financial Companies it is 14 percent.
- The Member Lending Institutions covered by this Scheme may not be charged any Guarantee Fee by the National Credit Guarantee Trustee Company Ltd (NCGTC).
Emergency Credit Line Guarantee Scheme
The Emergency Credit Line Guarantee Scheme (ECLGS) was approved by the Union Cabinet under Prime Minister Narendra Modi’s leadership in May 2020. The program was introduced as a component of the Atma Nirbhar Bharat package for Micro, Small, and Medium Enterprises (MSME) borrowers to lessen the hardship brought on by the COVID-19 pandemic. The Scheme is anticipated to benefit the economy and aid in its recovery by assisting MSMEs to continue operating in the face of the current unusual scenario.