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Loan Finance

ECLGS — Emergency Credit Line Guarantee

100% credit guarantee on additional working capital for MSMEs

Maximum benefit
₹5 Cr
Typical processing
7-10 working days from request to disbursement
Apply on official portal

About this scheme

Emergency Credit Line Guarantee Scheme provides 100% credit guarantee cover to member lending institutions for additional working-capital facilities to existing MSMEs. Launched during COVID, extended for stressed sectors.

What you get

  • 100% guarantee cover by NCGTC (Govt-backed)
  • Loan up to 30% of fund-based outstanding (max Rs. 5 Cr)
  • No collateral, no additional fees
  • Interest rate capped (typically 9.25%-9.5% PSU, MCLR-based)
  • 1-year moratorium on principal
  • 5-year repayment tenure

Who qualifies

Existing MSME borrowers with outstanding loans of any amount as of cut-off date. Account must be standard, special mention account, or SMA-0/SMA-1. Annual turnover up to Rs. 250 Cr.

All industries qualify (no NIC restriction).

Business types
ProprietorshipsPartnershipsPrivate LimitedLLPsOne Person CompaniesPublic Limited

Available across India (central scheme).

How to apply

  1. 1Approach existing lender (bank/NBFC where MSME has account)
  2. 2Lender pre-approves based on existing loan + GST turnover
  3. 3Submit Udyam + GST + bank statement (auto-pulled in most cases)
  4. 4Sanction typically within 7-10 days
  5. 5Disbursed as separate WCTL or top-up to existing CC

Key terms and conditions

  • 100% NCGTC guarantee — risk on Govt
  • Interest reset annually with bank rate changes
  • 12-month moratorium then 48-month EMI
  • Annual review at lender

What disqualifies you

  • Accounts in NPA status not eligible
  • New customers (no prior loan) excluded — additional facility only
  • Listed MSMEs above turnover threshold excluded

Documents typically required

  • Existing bank loan account
  • Udyam registration
  • GST returns last 2 years

The content above is compiled from public information published by the scheme authority. Eligibility, benefits, and procedures are subject to change. Confirm details directly with the official portal before applying. BharatSeal does not process scheme applications.