Avail Additional Working Capital through Emergency Credit Line Guarantee Scheme (ECLGS)
Government of India has introduced Emergency Credit Line Guarantee Scheme (ECLGS) through the Ministry of Finance through which you can get additional 20% of their entire outstanding term loan or working capital limit as on February 29th 2020.
Conditions is below :
- Entire Outstanding term loan or working capital should not be more than Rs. 25 Crore i.e. you can get additional maximum upto Rs. 5 Crore funding if you have loan outstanding upto Rs. 25 Crore as on February 29th 2020.
- Borrower who are having NPA status, will not be eligible.
- Only Business loan and working capital funding covered in this scheme, No other loan is covered.
- Only Business enterprises will get funding in this scheme i.e. Proprietorship, LLP, Partnership, Company.
This scheme is called Emergency Credit Line Guarantee Scheme and This scheme provides 100% guarantee covered by NCGTC.
Period of this scheme : May 23, 20 to October 31, 20.
Funding Till Now : Rs. 3 lakh Crore
Tenure of this funding : 48 months including principal moratorium for first 12 months
How to Apply : Approach your bank if you have availed loan from any bank, you should have pre- approval of this loan or apply to your bank through below link :
Axis Bank : https://www.axisbank.com/business-banking/avail-msme-and-corporate-financing/emergency-credit-line-guarantee-scheme/features-benefits#:~:text=Government%20of%20India%20through%20Ministry,25%20crore%20i.e.%20upto%20Rs.
Most of Banks are also accepting offline or in Manual mode application for this.
CA Lukesh Sethi