Expansion of Emergency Credit Line Guarantee Scheme

Context: Covid-19 relief to various sectors of Economy

The scheme was launched as part of the AtmaNirbhar Bharat Abhiyan package announced in May 2020 to mitigate the distress caused by coronavirus-induced lockdown, by providing credit to different sectors, especially Micro, Small and Medium Enterprises (MSMEs).
100% guarantee coverage is being provided by the National Credit Guarantee Trustee Company, whereas Banks and Non Banking Financial Companies (NBFCs) provide loans.
The credit will be provided in the form of a Guaranteed Emergency Credit Line (GECL) facility.
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 1.0: To provide fully guaranteed and collateral free additional credit to MSMEs, business enterprises, MUDRA borrowers and individual loans for business purposes
ECLGS 2.0: Focused on entities in 26 stressed sectors identified by the Kamath Committee along with the healthcare sector
ECLGS 3.0: Covers business enterprises in Hospitality, Travel & Tourism, Leisure & Sporting sectors
ECLGS 4.0: 100% guarantee cover to loans up to Rs.2 crore to hospitals/nursing homes/clinics/medical colleges for setting up on-site oxygen generation plants, interest rate capped at 7.5%;

About National Credit Guarantee Trustee Company

NCGTC was incorporated under the Indian Companies Act, 1956 on March 28, 2014 by the Department of Financial Services, Ministry of Finance
Purpose: To act as a common trustee company to manage and operate various credit guarantee trust funds

Current Trust Funds under the trusteeship management of NCGTC: