Emergency Credit Line Guarantee Scheme (ECLGS)

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Key features of the scheme

  • Emergency Credit Line Guarantee Scheme is a 100% collateral free loan facility designed for businesses affected by Covid-19
Loan Facility
  • Additional term loan facility for eligible business up to 20% of entire credit outstanding as of Feb’29 2020 across all existing lenders.
Eligibility Criteria
  • Annual business turnover as of Mar’ 2020 < 100 Cr
  • Total loan outstanding across all lenders as of Feb’2020 < 25 Cr
  • Not more than 60 days past due across all existing loan accounts
  • Loans provided in individual capacity are not covered under the scheme
Duration of Scheme
  • Applicable on loans sanctioned from date of issue of guidelines by NCGTC to October 31st 2020 or till an amount of Rs 3 Lac crore is sanctioned under the scheme
  • 4 years
  • 1 year moratorium on principal amount
  • First 12 Months – Interest-only EMI
  • Remaining 36 Months –  Interest + Principal EMI
  • The facility granted under the scheme shall rank second charge with the existing credit facilities in terms of cash flows (including repayments) and security, with charge on the assets financed under the Scheme to be created within stipulated time
Rate of Interest
  • 14% P.A.
Additional Charges
  • No Processing Fee
  • No Prepayment Penalty
  • The facility is backed by 100% guarantee from Government of India through National Credit Guarantee Trust Company (NCGTC)


Q. What is the scheme Called?
  • The scheme for emergency credit is called Emergency Credit Line Guarantee Scheme.
Q. What is the benefit of the Scheme?
  • This scheme has been launched in response to economic repercussions caused by Covid-19 pandemic. The main objective of this is to provide relief to the MSME sector by offering credit to meet their liabilities and restart businesses
Q. Until when is the scheme valid?
  • This scheme is valid for the duration between 23rd May 2020 and 31st Oct 2020, or until 3 Lakh Crore is sanctioned under the scheme, whichever is earlier.
Q. Who is eligible to apply for loan facility under this scheme?
  • This scheme is valid for existing Clix customers that have
    • An annual turnover of up to and under Rs 100 Cr for FY20 (As on Mar’2020)
    • Total credit exposure across their existing banks and NBFC loan accounts under Rs 25 Cr as of Feb 29’2020
    • Borrower accounts should be less than or equal to 60 days past due as on 29th February, 2020 i.e. All loan accounts should not have been classified as SMA 2 or NPA by any of the MLIs as on 29th February, 2020.
Q. What type of businesses can apply for this loan?
  • Businesses/MSMEs constituted as proprietorships, partnerships, registered companies, trusts , Society , HUF and LLPs (limited liability partnerships).
  • Interested borrowers under PMMY (Pradhan Mantri Mudra Yojana) are also eligible for this facility.
  • 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.Loans provided in individual capacity will not be covered under this scheme
Q. How much loan can I get under this scheme?
  • Under this scheme, borrowers can avail an incremental loan from their existing bank/NBFC of up to 20% of the credit exposure with that bank/NBFC, without providing an NOC (no objection certificate).
  • However, borrowers can avail the entire facility (20% incremental loan of overall credit exposure across all their lending institution partners) from a single existing lender, by providing an NOC from all the other lenders.
  • At any point, total incremental loan cannot go above 20% of the customer’s net outstanding across all existing lenders as on 29th Feb 2020.
Q. What will be the tenor of the loans under ECLGS?
  • The tenor of the said loans shall be four years from the date of disbursement of the loan.
Q. Will I automatically get the loan under the scheme without application?
  • The facility is a loan offer to all the eligible customers, who may choose to accept or opt out the same.
Q. When will I have to repay the loan?
  • One year moratorium would be provided on the principal repayment. However, Interest shall be charged and paid every month from the date of disbursement. Remaining interest and principal would be paid back in 36 EMIs after moratorium period is over
Q. Can I opt for less or more tenor of moratorium or EMI?
  • No, this facility has a fixed moratorium period on 12 months only on the principal component. Interest would be payable for the first 12 months. From 13th to 48th month, interest + principal would be payable.
Q. Will I have to pay any processing fee to avail this facility?
  • No processing fee shall be charged by the lenders
Q. What if I want to pre-pay the loan? Lump-sum or bullet payments?
  • Yes , Facility is available with No foreclosure charges or prepayment penalty .
Q. How much interest will be charged on the loan?
  • Interest rate of emergency credit would be charged @ 14% P.A
Q. Can the bank/NBFC offer less than 20% of my existing credit exposure with them?
  • The scheme states that eligible borrowers qualify for up to 20% incremental loan on their existing loan outstanding. Thus actual amount offered can be less and mutually agreed upon between borrower and lender
Q. Are off balance sheet loans provided to businesses covered under the scheme?
  • No, the scheme only recognizes on balance sheet outstanding loans for the purpose of evaluating eligibility and incremental loan amount
Q. Would loan under ECLGS be a separate loan or a top up on existing loan?
  • Loan offered under ECLGS would be under a distinct loan account for the existing borrower.
Q. What if I do not avail loan under ECLGS? Would I instead get any concession on my existing loan?
  • No, the credit facility under ECLGS is meant to provide relief in terms of extra credit to restart business and meet obligations. The scheme does not cover any benefits on existing loans.
Q. Do I need to put up any collateral to avail this facility?
  • The credit under this scheme will rank second charge with the existing credit facilities in terms of cash flows (including repayments) and securities, with charge on the assets financed under the Scheme to be created within a period of 3 months from the date of disbursal.
Q. Can new MSME borrowers benefit from this scheme?
  • No, the scheme only extends to existing borrowers.
Q. If my existing loan account is overdue, would I be eligible?
  • You are eligible only if your account overdue days are less than 60 days
Q. Since this loan is guaranteed by government, would my inability to pay hamper my credit rating?
  • Yes. Irrespective of the coverage, default and delinquencies have an adverse impact on borrowers’ credit rating and credit score
Q. How do I get the NOC in case I want to apply someplace else?
  • The customer shall apply for NOC by writing at hello@clix.capital with subject as ECLGS and existing LAN. In case, Clix is not funding and finds it appropriate, we shall issue the NOC in favor of the lender as requested
Q. Can a Bank/NBFC deny loan under this facility? Or reject the application?
  • Yes, the lender is supposed to ensure fulfilment of basic criteria as laid under the scheme & also do basic due diligence for sanctioning the loan. Hence, applications may be subject to rejections
Q. Will my EMI for existing loan go towards the loan under ECLGS?
  • All payments received shall be apportioned towards the dues of existing loan first and then towards loan under this scheme.

If you still have any concerns/queries, reach out to your relationship manager. For more details on the scheme, visit www.eclgs.com