Overview

The Emergency Credit Line Guarantee Scheme (ECLGS) is an MSME loan scheme. It has been launched specifically to help MSMEs and other small business entities to deal with the working capital issues caused due to the impact of the ongoing COVID-19 pandemic and the subsequent lockdown.

This scheme provides an additional capital of Rs 3,00,000 crore to business enterprises, primarily MSMEs. This capital is a guaranteed emergency credit line to help MSMEs get their business operations back on track by provision of access to working capital at a time when credit has become difficult to obtain.

MSMEs and other business enterprises which are registered as proprietorships, partnerships or private limited companies will be the beneficiaries of this scheme.

Special Features of GECL Scheme Loans

• Repayment tenure of up to 4 years
• Moratorium of up one year on the principal amount will be offered, and you can pay only the interest component. The principal amount can be paid within 36 months post the moratorium period.
• The scheme will be applied to all loans sanctioned under the GECL scheme from May 23 – Oct 31, 2020 or till a GECL loan of Rs 3 lakh crores is sanctioned (whichever comes earlier).
• Separate loan account for borrowers who are sanctioned loans under this scheme
  

Who is Eligible for the ECLGS scheme?

Borrowers, for the purpose of this Scheme, will include MSMEs/ Business Enterprises which are constituted as Proprietorships, Partnerships, Registered Companies, private ltd companies. Actual eligibility criteria will depend on a variety of factors, including SMFG Grihashakti policies at the time of loan application.

What is the Amount that can be Borrowed?

Guaranteed Emergency Credit Line (GECL) scheme provided to eligible business enterprises or MSMEs in the form of additional term loan facility from SMFG Grihashakti would be upto 20% of their total outstanding loans up to Rs 25 crore as on 29th February 2020.

What is the Interest Rate on Such Loans?

For ensuring that the cost of borrowing remains low and that the scheme is beneficial for borrowers, at SMFG Grihashakti, we are offering attractive interest rates for the loans offered under this scheme. Please note that the final interest rate offered to you will depend on a number of factors, including SMFG Grihashakti policy at the time of application.

How to Apply for a GECL Scheme Loan at SMFG Grihashakti?

At SMFG Grihashakti, it is our continuous effort to enable customers achieve their dreams and aspirations related to their businesses. Thus, if you are an entity and have an existing loan (non home loan) with us and would like to apply for GECL loans with us, please feel free to get in touch with us today. You can do so by:

Calling on our toll free number - 1800 102 1003 between 9:00 AM – 6:30 PM on Monday to Friday and 9:00 AM – 3:00 PM Saturdays (except public holidays & fourth Saturday of the month)

Write to us at grihashakti@grihashakti.com. We will get back to you within 2 business days

Repayment terms of the loan

A moratorium period of one year on the principal amount shall be provided for GECL funding. Interest shall, however, be payable during the moratorium period. The principal shall be repaid in 36 installments after the moratorium period is over.

For further details about the scheme, please visit the page.