Optimize IAS
  • Home
  • About Us
  • Courses
    • Prelims Test Series
      • LAQSHYA 2026 Prelims Mentorship
      • Prelims Test Series 2025
    • CSE Integrated Guidance 2025
      • ARJUNA PRIME 2025
    • Mains Mentorship
      • Arjuna 2026 Mains Mentorship
  • Portal Login
  • Home
  • About Us
  • Courses
    • Prelims Test Series
      • LAQSHYA 2026 Prelims Mentorship
      • Prelims Test Series 2025
    • CSE Integrated Guidance 2025
      • ARJUNA PRIME 2025
    • Mains Mentorship
      • Arjuna 2026 Mains Mentorship
  • Portal Login

Emergency Credit Line Guarantee Scheme

  • December 13, 2022
  • Posted by: OptimizeIAS Team
  • Category: DPN Topics
No Comments

 

 

Emergency Credit Line Guarantee Scheme

Subject :Economy

Context: 

Emergency Credit Line Guarantee Scheme (ECLGS), has benefitted around 1.19 crore businesses.

Concept:

Emergency Credit Line Guarantee Scheme (ECLGS) 

  • It was announced as part of the AtmaNirbhar Bharat Package in 2020.
  • It aims to help businesses including MSMEs to meet their operational liabilities and resume businesses in view of the distress caused by the COVID-19 crisis.
  • Objective: To provide fully guaranteed and collateral free additional credit to MSMEs, business enterprises, MUDRA borrowers and individual loans for business purposes to the extent of 20% of their credit outstanding as on 29th February, 2020.
  • 100% guarantee coverage is to be provided by National Credit Guarantee Trustee Company Limited (NCGTC) to the Member Lending Institutions (MLI), Banks, Financial Institutions, and Non-Banking Financial Companies (NBFC) against any losses suffered by them due to non-repayment of the ECLGS funding by borrowers.
  • No Guarantee Fee shall be charged by NCGTC from the Member Lending Institutions (MLIs) under the Scheme.
  • Interest rates under the Scheme shall be capped at 9.25% for banks and FIs, and at 14% for NBFCs.
  • ECLGS is under the operational domain of the Ministry of Finance, Department of Financial Services (DFS).
  • The scheme was launched with an initial admissible limit of the guarantee cover at ₹3 lakh crore which was later enhanced to ₹4.5 lakh crore and further to ₹5 lakh crore in the 2022-23 budget announcement.
  • The eligibility criteria for availing credit under ECLGS are:
    • For ECLGS 1.0; MSME units, Business Enterprises, Mudra Borrower and individual loans for business purpose having loan outstanding upto Rs.50 crore and days past due upto 60 days as on 29.02.2020.
    • For ECLGS 2.0; Borrower belonging to 26 stressed sectors identified by Kamath Committee & Healthcare sector having loan outstanding above Rs.50 crore and upto Rs.500 crore and days past due upto 60 days as on 29.02.2020.
    • For ECLGS 3.0; Borrower belonging to Hospitality, Travel & Tourism, Leisure & Sporting and Civil Aviation sector having days past due upto 60 days as on 29.02.2020.
    • For ECLGS 4.0; Existing Hospitals/Nursing Homes/Clinics/Medical Colleges/units engaged in manufacturing of liquid oxygen, oxygen cylinders etc. having credit facility with a lending institution with days past due upto 90 days as on March 31, 2021.

National Credit Guarantee Trustee Company Limited

  • NCGTC or the National Credit Guarantee Trustee Company Limited is registered under the Companies Act, 1956 in 2014 as a private limited company.
  • It is a wholly-owned company of the Government of India
  • It was established by the Department of Financial Services, Ministry of Finance to act as a common trustee company for multiple credit guarantee funds.
  • The main role of the Organisation is to design credit guarantee programs, to share the risk of lending among the lenders, and facilitate financial access to a prospective borrower.
economy Emergency Credit Line Guarantee Scheme

Recent Posts

  • Daily Prelims Notes 23 March 2025 March 23, 2025
  • Challenges in Uploading Voting Data March 23, 2025
  • Fertilizers Committee Warns Against Under-Funding of Nutrient Subsidy Schemes March 23, 2025
  • Tavasya: The Fourth Krivak-Class Stealth Frigate Launched March 23, 2025
  • Indo-French Naval Exercise Varuna 2024 March 23, 2025
  • No Mismatch Between Circulating Influenza Strains and Vaccine Strains March 23, 2025
  • South Cascade Glacier March 22, 2025
  • Made-in-India Web Browser March 22, 2025
  • Charting a route for IORA under India’s chairship March 22, 2025
  • Mar-a-Lago Accord and dollar devaluation March 22, 2025

About

If IAS is your destination, begin your journey with Optimize IAS.

Hi There, I am Santosh I have the unique distinction of clearing all 6 UPSC CSE Prelims with huge margins.

I mastered the art of clearing UPSC CSE Prelims and in the process devised an unbeatable strategy to ace Prelims which many students struggle to do.

Contact us

moc.saiezimitpo@tcatnoc

For More Details

Work with Us

Connect With Me

Course Portal
Search