The GECL is a loan for which 100% guarantee would be provided by National Credit Guarantee Trustee Company (NCGTC) to Member Lending Institutions (MLIs), and which will be extended in the form of additional working capital term loan facility in case of Scheduled Commercial Banks (SCBs) and Financial Institutions (FIs), and additional term loan facility in case of Non-Banking Financial Companies (NBFCs), to eligible MSMEs/ Business Enterprises and interested Pradhan Mantri Mudra Yojana (PMMY) borrowers. Credit under GECL would be up to 20% of the borrower’s total outstanding credit up to Rs. 25 crore, excluding off-balance sheet and non-fund based exposures , as on 29th February, 2020, i.e., additional credit shall be up to Rs. 5 crore.
What is the Emergency Credit Line Guarantee Scheme?
The Emergency Credit Line Guarantee Scheme provides 100% guarantee coverage by NCGTC
to MLIs on GECL of up to Rs. 3 lakh crore to eligible MSMEs. MSMEs for the purpose of this
Scheme will include MSMEs/ Business Enterprises which are constituted as Proprietorships,
Partnerships, Registered Companies, Trusts and Limited Liability Partnerships (LLPs), and also
interested borrowers under PMMY.
