Guaranteed Emergency Credit Line (GECL)

S.No

Parameter

Guidelines

Name

• The Scheme shall be named as ‘Emergency Credit Line Guarantee Scheme (ECLGS)’. It shall have the following components, ECLGS 1.0, ECLGS 1.0(Extension), ECLGS 2.0, ECLGS 2.0(Extension), ECLGS 3.0, ECLGS 3.0(Extension) and ECLGS 4.0
• The credit product for which guarantee would be provided under the Scheme shall be named as ‘Guaranteed Emergency Credit Line (GECL)’.  

Nature of Facility

1. Under ECLGS 1.0, ECLGS 1.0(Extension)
   • Fund Based-Working Capital Term Loan
2. Under ECLGS 2.0, ECLGS 2.0(Extension), ECLGS 3.0 & ECLGS 3.0(Extension)  
   • Fund Based-Working Capital Term Loan
   • Non fund based facility
   • Combination of both Fund + Non Fund
3. Under ECLGS 4.0
   • Fund Based (Term Loan)
   • Non fund based (LC for import of capital goods)

Eligibility Criteria

1. 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 (regular, SMA-0 & SMA-I) as on 29th February, 2020 i.e. they should not have been classified as SMA 2 or NPA by any of the lender as on 29th February, 2020.
2. Under ECLGS 1.0 (Extension)
   • All borrowers who have availed assistance under ECLGS 1.0 or new businesses which are eligible under ECLGS 1.0 based on the revised reference date of 31st March 2021 and meet the other terms of these guidelines are eligible.
3. 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 are covered.
   • To be eligible under ECLGS 2.0, the borrower accounts should be less than or equal to 60 days past due (regular, SMA-0 & SMA-I) as on February 29, 2020 i.e. they should not have been classified as SMA 2 or NPA by any of the lender as on 29th February 2020.
4. Under ECLGS 2.0 (Extension)
   • All borrowers who have availed assistance under ECLGS 2.0 or new businesses which are eligible under ECLGS 2.0 based on the revised reference date of 31^st March 2021 and meet the other terms of these guidelines are eligible.  
5. Under ECLGS 3.0
   • All Business Enterprises / MSMEs in the Hospitality and related Sectors - hotels and restaurants, marriage halls, canteens etc, travel and tourism, travel agents, tour operators, adventure or heritage facilities, leisure and sporting, private bus operators, car repair services, rent-a-car service providers, event/conference organizers, spa clinics, beauty parlours / salons, motor vehicle aggregators, cinema halls, swimming pools, entertainment parks, theatres, bars, auditorium, yoga institutes, gymnasiums, other fitness centers, units / person engaged in catering or cooking and Floriculture products, and  Civil Aviation Sector- Airlines (including scheduled and non-scheduled airlines, chartered flight operators, air ambulances), airports, aviation ancillary services such as ground handling and supply chain whose days past due are upto 60 days as on 29.02.2020.
6. Under ECLGS 3.0 (Extension)
   • Borrowers who have availed assistance under ECLGS 3.0 or New businesses which are eligible under ECLGS 3.0 based on the revised reference date of 31st March 2021 or 31st January 2022 and meet the other terms of these guidelines.
7. Under ECLGS 4.0
   • All existing hospitals/nursing homes/clinics/ medical colleges / units engaged in manufacturing of liquid oxygen, oxygen cylinders etc. who have a credit facility from a lending institution with days past due upto 90 days (regular, SMA-0, SMA-I & SMA II) as on 31.03.2021 are eligible for assistance of upto Rs.2 crore for setting up technologies like Pressure Swing Adsorption for on-site oxygen producing plants.

• 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. Loans provided to individuals / proprietorship firms for business purposes shall be eligible for coverage under ECLGS 1.0 / 3.0 (as specified in the FAQs) under specified categories.
• For the purpose of ECLGS 1.0, 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 1.0/3.0. 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 29.02.2020/31.03.2021/ 31.01.2022 to be checked across all lending institutions from credit bureau while sanctioning loans under ECLGS.
• All borrower accounts which had NPA or SMA-2 status as on 29.2.2020 shall not be eligible under ECLGS 1.0, ECLGS 2.0 and ECLGS 3.0. Similarly, all borrower accounts which had NPA or SMA-2 status as on 31.03.2021 shall not be eligible under ECLGS 1.0 (Extension), ECLGS 2.0(Extension).All borrower accounts which had NPA status or SMA-2 status as on 31.03.2021 or 31.01.2022 shall not be eligible under ECLGS 3.0/3.0(Extension).
• All borrower accounts which had NPA status as on 31.03.2021 shall not be eligible under ECLGS 4.0.
• 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.
• The borrower account otherwise eligible under the scheme should not be NPA as on the date of sanction/disbursement.
• 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.

Opt in / out Option

• 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, ECLGS 3.0 & ECLGS 4.0 however, shall be on ‘Opt-in’ basis.

Quantum of Finance

1. Under ECLGS 1.0
   • 20% of their total credit outstanding up to Rs.50 crore (fund based only) as on 29th February, 2020.
2. Under ECLGS 1.0(Extension)
   • upto 30% of their total credit outstanding (net of support received under ECLGS 1.0) up to Rs.50 crore (fund based only) as on 29th February, 2020 or 31st March 2021, whichever is higher.
3. Under ECLGS 2.0
   • upto 30% of their total credit outstanding (fund based only, net of support received under ECLGS 2.0) up to Rs. 500 crore as on 29th February, 2020 or 31st March, 2021, whichever is higher. 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.
4. Under ECLGS 2.0(Extension),
   • upto 30% (enhanced from the present 20%) of their total credit outstanding (fund based only, net of support received under ECLGS 2.0) up to Rs.500 crore as on 29^th February, 2020 or 31^st March, 2021, whichever is higher, subject to the borrower meeting all the eligibility criteria.
   • Credit facility under ECLGS 2.0(Extension) could be in the form of fund based or non-fund based facility or a mix of the two.
5. Under ECLGS 3.0
   • The amount of GECL funding to eligible borrowers would be up to 50% of their total fund based outstanding credit as on 29.02.2020, subject to a cap of Rs.200 crore per borrower and the borrower meeting all the other eligibility criteria. The 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 balance eligibility based on their credit outstanding as on 29.02.2020.
6. Under ECLGS 3.0 (Extension)
   • I. For all the eligible business other than the aviation sector (i.e. hospitality and related sectors), the amount of GECL funding would be up to 50% of the total credit outstanding (fund based only, net of ECLGS support already received, if any) as on 29.02.2020 or 31.03.2021 or 31.01.2022, whichever is higher, subject to cap of Rs.200 crore per borrower and the borrower meeting all the other eligibility criteria.
   • II. For all eligible businesses in the aviation sector, the amount of GECL funding to eligible borrowers either in form of fund based facility or Non-fund based facility would be up to 50% of their total credit outstanding (both fund based and non-fund based outstanding, net of ECLGS support already received, if any) as on 29.02.2020 or 31.03.2021 or 31.01.2022, whichever is higher, subject to a cap of Rs.400 crore per borrower and the borrower meeting all the other eligibility criteria.
   • III. However, for airlines, the maximum eligibility shall be 100% of their total credit outstanding (both fund based and non-fund based outstanding, net of ECLGS support already received, if any) as on 29.02.2020 or 31.03.2021 or 31.01.2022, whichever is higher, subject to a cap of Rs.1,500 crore per borrower (of which Rs.500 crore to be allowed only subject to proportionate equity contribution by the promoters/owners) and the borrower meeting all the other eligibility criteria.
7. Under ECLGS 4.0
   • The amount of GECL funding to eligible borrowers would be in the form of fund based (term loan) or non-fund based (LC for import of capital goods) facility and would be limited to Rs.2 crore per borrower for setting up on-site oxygen producing plant.
   • 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.

Multiple Lending (Multiple Banking and Consortium Banking)

• 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 Bank.
• In case the borrower wishes to take from any lender an amount more than the proportional 30% [50%in case of ECLGS 3.0 & ECLGS 3.0 (Extension), subject to cap as specified] 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 30% (50% in case of ECLGS 3.0 and ECLGS 3.0 (Extension)] subject to specified cap per borrower) of the outstanding credit that the borrower had with that lender..

Tenure

1. Under ECLGS 1.0: four years from the date of first disbursement.
2. Under ECLGS 1.0 (Extension): five years from the date of first disbursement.
3. Under ECLGS 2.0: five 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 June 30, 2023.
4. Under ECLGS 2.0 (Extension): Six 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 June 30, 2023.
5. Under ECLGS 3.0 & 3.0 (Extension): six years from the date of first disbursement.
6. Under ECLGS 4.0:  five years from the date of first disbursement of fund based facility or first date of utilization of non-fund based facility, whichever is earlier. Last date of disbursement under fund based facility and utilization of LC under non-fund facility shall be June 30, 2022.The last date of disbursement for fund based facility under the scheme shall be June 30, 2023.

Note: The last date of disbursement for fund based facility under the scheme shall be June 30, 2023.

While no last date has been stipulated for the non-fund based facility under ECLGS 2.0, & 2.0(Extension), 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 and 6 years from the first date of utilization by the borrower under ECLGS 2.0 and 2.0 (Extension) respectively or June 30, 2028 in case of ECLGS 2.0 borrowers and June 30, 2029 in case of ECLGS 2.0 (Extension) borrowers, whichever is earlier.  

Moratorium

• one year on the principal amount shall be provided to borrowers under ECLGS 1.0 & 2.0 and 6 months under ECLGS 4.0 during which interest shall be payable.
• 2 years on the principal amount shall be provided to borrowers of GECL facility under ECLGS 3.0, during which period interest shall be payable.
• 2 years on the principal repayment shall be provided to borrowers for the fund based portion of GECL credit under ECLGS 1.0(Extension), 2.0(Extension), 3.0 & 3.0(Extension).

Disbursal & Repayment

• The last date of sanction and disbursement of fund based facility is March 31, 2023 and June 30, 2023 respectively.
• Entire disbursement out of fund based facility should happen on or before June 30, 2023.
• Utilization of at least first tranche under non-fund based facility under ECLGS 2.0/2.0(Extension)/ECLGS 3.0/3.0(Extension) should happen on or before June 30, 2023.
• Utilisation of further tranches under non-fund based facility under ECLGS 2.0/2.0(Extension)/ ECLGS 3.0/3.0(Extension) can happen subsequently during the currency of the guarantee cover.
• Utilisation of entire non-fund based facility (LC for import of capital goods) under ECLGS 4.0 should happen on or before June 30, 2023, even though they may be crystallizing later.
• No pre-payment penalty in case of early repayment.
• Interest shall, be payable during the moratorium period.
• The principal shall be repaid in 36 monthly installments under ECLGS 1.0, & 1.0(Extension), in 48 monthly instalments under ECLGS 2.0, 2.0(Extension), 3.0, & 3.0(Extension) and in maximum 54 monthly instalments under ECLGS 4.0, after the moratorium period is over.

Margin

• NIL for funded facility under ECLGS.
• In case of Non-funded facility under ECLGS 2.0: The margin should be as per existing non-funded facility.
• In case, there is no existing non-funded facility, the margin of 25% should be taken [only for non-funded portion of ECLGS 2.0, ECLGS 2.0 (Extension)].

with regard to non-fund based support under ECLGS 3.0/3.0(Extension), the fee/ commission has been capped at 0.5% p.a. and no cash margin should be stipulated.

Rate of Interest / commission for Non-Funded facility

1. For ECLGS 1.0, ECLGS 1.0(Extension), ECLGS 2.0, ECLGS 2.0(Extension), ECLGS 3.0 & ECLGS 3.0(Extension)

   A. MSMEs

   • RLLR + 0.05% subject to maximum up to 9.25%. (during the entire tenure of this loan facility).

   B. Non- MSMEs

   • MCLR + spread of 0.20% to 1%, to be decided by the sanctioning authority on case to case basis, subject to maximum up to 9.25% (during the entire tenure of this loan facility).
2. For ECLGS 4.0,

   Linked to RLLR / MCLR with maximum up to 7.5% p.a

   • Interest to be served as and when applied.
   • Penal interest as per extant Bank’s guidelines would be charged for default in payment of installments & interest

   within stipulated time period.

   • No penal interest due to any non-compliance of the already accepted covenants on the existing credit facilities may be charged on this product during the sanction time.

Commission on Non-Funded Facility:

• In case of existing non-fund facility: Charges as per existing sanction.
• In case of fresh sanction of non-fund facility: As per extant guidelines of service charges.

Exception:

• For Non-fund based support under ECLGS 3.0/3.0(Extension): 0.5% p.a. and no cash margin

Restructuring in terms of RBI Guidelines of May 05, 2021 (as amended vide RBI circular dated June 04, 2021) 

• Borrowers who have availed assistance under ECLGS 1.0 and are eligible for restructuring as per RBI guidelines of May 05, 2021 (as amended vide RBI Circular dated June 04, 2021) are permitted to avail of the same. GECL loans in such cases would be allowed a repayment tenure of upto 5 years, i.e, period upto 24 months during which only interest shall be payable and the principal instalments shall be payable thereafter in 36 monthly instalments.
• Borrowers who avail of the restructuring as per RBI guidelines shall be permitted to avail additional assistance upto 10% of their outstanding as on February 29, 2020 with the respective MLI, provided they have not availed additional assistance under ECLGS 3.0. They shall not be subsequently eligible for ECLGS 3.0, i.e. borrowers may either avail of this additional 10% or additional assistance under ECLGS 3.0, but not both.
• All the Branches & Borrowers shall ensure to comply with the terms and conditions of the said RBI guidelines.

Security

• The additional WCTL or non-fund based facility granted under ECLGS (all component of ECLGS) 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 June 30, 2023 or date of NPA, whichever is earlier. 
• No additional collateral shall be asked for additional funding under GECL.
• Borrowers availing assistance under ECLGS 4.0 shall open ESCROW A/c on which Bank shall have its charge.  

Collateral

No additional collateral shall be asked for additional credit extended under this scheme.

Scheme Validity

The Scheme would be applicable to all loans sanctioned under GECL during the period from the date of issue of these guidelines by NCGTC upto 31.03.2023 or till guarantees for an amount of Rs.4,50,000 crore are issued (taking into account all components of ECLGS), whichever is earlier.

System Procedure

A separate loan account shall be opened for the borrower for extending additional credit under this scheme.

Guarantee Coverage

• The National Credit Guarantee Trustee Company Limited (NCGTC) 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.
• Credit Guarantee from NCGTC would be unconditional and irrevocable.
• Once Bank enters the details of the loan sanctioned to an eligible borrower as per the scheme guidelines, the system shall approve the guarantee automatically and shall provide Application Reference No. and Credit Guarantee Number to the Bank, which shall be used by the Bank 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.
• However, as the guarantee cover for the non-fund based facility shall reduce proportionately with the passage of time (by 25% each year under ECLGS 2.0, ECLGS 2.0 extension, ECLGS 3.0, ECLGS 3.0 extension post moratorium period), the risk weight on the amount of non-fund based facility outstanding shall be applied by the MLIs accordingly based on the guarantee cover available during that year.

Guarantee Fee

No Guarantee Fee for all credits facilities provided under this scheme.

Insurance

Comprehensive insurance of all the securities charged to the Bank should be taken with Bank clause.

Processing Fee

Nil (No separate processing charge is to be recovered for ECLGS)

Prepayment Charges

Nil

CIBIL charges

100/- + GST

Documentation/Other Charges

As per extant guidelines of Bank