GECLS Extension Loans

GECLS Extension Loans

S No. Parameter Norms
1.    Name of the Product Emergency Credit Line Guarantee Scheme(ECGLS) :

a.    IND GECLS 1.0(Extension),

b.     IND GECLS  2.0(Extension)

c.     IND GECLS 3.0(Extension)

2.    Eligible Borrowers All MSMEs/ Business Enterprises i.e. Proprietorship concern / Partnership Firm / Registered Company / Trust / Limited Liability Partnership/ PMMY Borrowers/Loans to individual Borrowers both existing and new eligible under any of the schemes of  IND GECLS 1.0 or IND GECLS 2.0 or IND GECLS 3.0 based on revised reference date 31.03.2021 :

a)    IND GECLS 1.0(Extension) refers to the scheme for providing additional support to existing borrowers of IND GECLS 1.0 or new borrowers eligible under IND GECLS 1.0 based on revised reference date of March 31, 2021.

b)    IND GECLS 2.0(Extension) refers to the scheme for providing additional support to existing borrowers of IND GECLS 2.0 or new borrowers eligible under IND GECLS 2.0 based on revised reference date of March 31, 2021.

c)    IND GECLS 3.0(Extension) refers to the scheme for providing additional support to existing borrowers of IND GECLG 3.0 or new borrowers eligible under IND GECLS 3.0 based on revised reference date of March 31, 2021

3 Eligible Criteria a.    The borrower should not be classified as SMA-2 or NPA as on 31.03.2021 by any of the lender.

b.    MLIs to check with credit bureau the overall outstanding of the borrower and Days past due status to assess the eligibility of the borrower.

c.     Loans provided to Individuals for Business purpose shall be eligible only under IND GECLS 1.0 Extension.

d.      Business Enterprises / MSME borrower must be GST registered in all cases where such registration is mandatory. This condition will not apply to Business Enterprises / MSMEs that are not required to obtain GST registration

4 Purpose To meet the working capital requirement of the unit and restart their businesses
5 Validity The Scheme would be applicable upto all loans sanctioned under GECL till  March 31, 2022, or till guarantees for an amount of Rs. 4.5 lakh crore are issued by NCGTC, whichever is earlier
6 Nature of facility  Term Loan/ Working Capital Term Loan
7 Loan amount a)    30% of the borrower’s total outstanding credit (40% in respect of borrowers in the Hospitality sector, Travel & Tourism sector, Leisure & Sporting sector and Civil Aviation sector, subject to a maximum of Rs.200 crore per borrower), excluding off-balance sheet and non-fund based exposures, as on 29th February, 2020 or 31st March, 2021, whichever is higher.

b)    Borrowers who have availed support based on outstanding of 29.02.2020 under Ind GECLS 1.0, 2.0 and 3.0 will be net of the “IND-GECLS” liability and those who have not been supported under ECLGS 1.0, 2.0 and 3.0  based on outstanding of 29.02.2020 shall be eligible for additional credit support upto the specified limit as mentioned above.

c)    In case of MBA / Consortium, the loan under the scheme can be availed from one lender or multiple lenders proportionately or depending upon the agreement between borrower and financiers.  If the borrower wishes to avail from any lender more than the proportional amount, NOC from other lenders to be obtained.  If the loan amount from each lender is proportionate to their outstanding credit, no NOC is required.

8 Margin             Nil
9 Rate of Interest For GECLS 1.0 Extension: Repo Linked

MSME / Mudra Business enterprises/ Other business enterprises: Repo (4.00%) + 2.80% (minimum spread) + 0.70% (floating)  (Presently: 7.50% p.a.)

For GECLS 2.0 Extension:

  1. For MSME / Business enterprises: Repo linked Repo (4.00%) + 4.35% (Presently: 8.35% p.a.)

b. For others Business enterprises: MCLR linked

MCLR 1 Year (7.35%) +1.00 % i.e. presently 8.35% p.a

For GECLS 3.0 Extension:

a)    MSME / Mudra Business enterprises/ Other business enterprises linked to Repo:

Repo (4.00%) + 2.80% (minimum spread) + 0.70% (floating) Presently: 7.50% p.a.)

(b) Other Business enterprises linked to MCLR:

MCLR (7.35%) + 1.00% (floating) (Presently: 8.35% p.a.)

The ROI will be linked to Repo rate or Marginal Cost of lending Rate (MCLR) with a maximum cap of 9.25 % p.a..

  Commission / charges for Non-FB Facility The commission & other charges for non-fund-based facility sanctioned under GECLS-2.0 will be at the existing rate for NFB facilities being charged in the account.
10 Loan Tenor and Moratorium Period 

Facility   Total Repayment

(Door to Door)

Moratorium Principal Repayment
GECL 1.0(Extension) 5 years 2 years 3 Years
GECL 2.0 (Extension) 6 years 2 years 4  Years
GECL 3.0 (Extension) 6 years 2 years 4 Years

Interest shall be payable during the moratorium Period.

No moratorium for NFB facility.

( Last modified on Sep 03, 2022 at 08:09:55 PM )

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