In May 2020, The Union Cabinet, led by Prime Minister Narendra Modi started the Emergency Credit Line Guarantee Scheme (ECLGS) which has been expanded by the Finance Ministry. The ECLGS scheme was launched as a part of the Atma Nirbhar Bharat package at the time of COVID-19 pandemic time for the Micro, Small, and Medium Enterprises (MSME) borrowers to mitigate the distress caused by the COVID-19 pandemic. Initially, the scheme was announced in May 2020 but over a period of time, the Finance Ministry has expanded the scope of the ECLGS which provides 100 percent guarantee cover to loans up to Rs.2 crore to hospitals, nursing homes, clinics and medical colleges for setting up on-site oxygen generation plants, interest rate capped at 7.5%.
How To Apply:
- Click on the official website and open the application form.
- Enter your name and other required details.
- Share your basic personal and business details.
- Share your bank statement.
- Submit the application form.
Official webpage: The Emergency Credit Line Guarantee Scheme (ECLGS) 2022
Apply Online: The Emergency Credit Line Guarantee Scheme (ECLGS) 2022
The Emergency Credit Line Guarantee Scheme (ECLGS) 2022 – Notification, Application Form, Apply Form Online
Through ECLGS scheme, Indian government objective to provide Rs.3 lakh crore of unsecured loans to MSMEs and companies across the country to mitigate the losses suffered due to COVID-19. Emergency Credit Line Guarantee Scheme (ECLGS) is a government scheme which was launched by Prime Minister Narendra Modi is a part of the AtmaNirbhar Bharat Abhiyan to make India a self-dependent country and intending to provide financial assistance to this pandemic hit economy.
ECLGS 4.0 – Expansion of the Scheme:
The Indian government notified the expansion of the ECLGS on 31st May 2021 which is known as version of ECLGS 4.0 and all existing hospitals, nursing homes, clinics and units engaged in manufacturing of liquid oxygen, oxygen cylinders etc. are covered under this scheme. The Guidelines of the Emergency Credit Line Guarantee Scheme (ECLGS) issued by NCGTC and eligible borrowers who earlier had loan tenure of four years can now avail of loan tenure of five years.
Eligibility:
- Under this scheme, Enterprises with a turnover of up to Rs. 250 crores (FY 2019-20) with outstanding loans up to Rs. 50 crores, as of February 29, 2020
- Under this scheme, GECL credit provided will be up to 20% of the borrower’s total outstanding credit as of February 29, 2020.
- Under this scheme, the maximum amount of loan that can be availed is Rs. 5 crore.
Required Documents:
- KYC Documents.
- Address Proof.
- Financial Documents.
- Proof of Business Ownership.