Eligibility Criteria for Emergency Credit Line Guarantee Scheme
- The ECLGS 1.0 Scheme is open to all Business Enterprises/MSME borrower accounts with combined outstanding loans of up to Rs. 25 crores as of Feb. 29, 2020, and an annual turnover of up to Rs. 100 crores for FY 2019–20.
- Under ECLGS 2.0, companies that owed between Rs 50 and Rs 500 crore as of February 29, 2020, qualified.
- ECLGS 3.0 will only take into account loans that were less than 60 days past due as of February 29, 2020, and whose total credit outstanding did not exceed Rs 500 crore.
- The Scheme will be applicable to loans given to Business Enterprises and MSMEs that are organized as proprietorships, partnerships, registered companies, trusts, and limited liability partnerships (LLPs).
- Loans made on an individual basis are not protected by this Scheme.
- Existing consumers on the Member Lending Institutions’ (MLI) books are eligible for the Scheme.
- As of February 29, 2020, borrower accounts that had Non-Performing Asset(NPA) or SMA-2 status are not eligible for the Scheme.
Emergency Credit Line Guarantee Scheme
The Emergency Credit Line Guarantee Scheme (ECLGS) was approved by the Union Cabinet under Prime Minister Narendra Modi’s leadership in May 2020. The program was introduced as a component of the Atma Nirbhar Bharat package for Micro, Small, and Medium Enterprises (MSME) borrowers to lessen the hardship brought on by the COVID-19 pandemic. The Scheme is anticipated to benefit the economy and aid in its recovery by assisting MSMEs to continue operating in the face of the current unusual scenario.