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  2. ECLGS INFORMATION

Overview :

Covid19 has impacted Business Enterprises/MSMEs adversely resulting in disruption in cash flows and loss of income.  In order to alleviate the hardships, Government of India, has introduced Emergency Credit Line Guarantee Scheme (ECLGS) with a view to provide additional working capital term loans to the eligible borrowers to meet the operational liabilities and restart the business.   The Scheme is administered by National Credit Guarantee Trust Company Ltd (NCGTC).

IndusInd Bank is pleased to offer this  Scheme to meet the emergency requirements of our eligible MSME/ Business Enterprise clients to help  them to restart their business.  Scheme details are as below :

Nature of facility :  Working Capital Term Loan (WCTL)

Eligibility Criteria :

  • All borrower accounts (Business Enterprises/ MSMEs) with combined outstanding loans of up to Rs. 25 crore with all Member Lending Institutions as on 29.02.2020 and annual turnover of up to Rs.100 crore in the previous financial year (2019-20).
  • Business Enterprises / MSMEs constituted as Proprietorship, Partnership, registered company, trusts and Limited Liability Partnerships (LLPs) are eligible.
  • Business Enterprises / MSMEs  include loans covered under Pradhan Mantri Mudra Yojana extended on or before 29.02.2020 and reported on the MUDRA portal.
  • Total outstanding amount would comprise of the on-balance sheet exposure. Off-balance sheet and non-fund based exposures will be excluded.
  • Only existing customers on the books of the Bank as on 29.02.2020 are eligible.
  • Borrower accounts should be less than or equal to 60 days past due as on 29.02.2020. Borrower accounts which had NPA or SMA-2 status, as on 29.02.2020 are not be eligible.
  • For loans having co-applicant, only those existing loans where entity is the primary co-applicant are covered under the Scheme.
  • The borrower must be GST registered in all cases where such registration is mandatory. This condition will not apply to borrowers that are not required to obtain GST registration.
  • Loans provided in individual capacity are not covered under the Scheme

Validity :   Scheme is valid until 31.10.2020 or on reaching the threshold stipulated as per Scheme  by NCGTC whichever is earlier.

Loan amount : Maximum up to 20% of the entire fund based outstanding as on 29.02.2020, subject to a maximum of Rs. 5 crore.

Tenor & Repayment : Maximum of 4 years from the date of disbursement, including moratorium of 12 months for principal repayment.

Prepayment penalty : NIL

Securities :

  • The additional WCTL facility shall rank second charge with the existing credit facilities, in respect of underlying security as well as cash flows for repayment.  Charge on the assets financed under the Scheme is to be created within a period of three months from the date of disbursal.
  • No additional collateral for additional funding under ECLGS.

The Scheme is subject to revision as per NCGTC guidelines. Please do refer to Operational guidelines and FAQs issued by NCGTC from time to time. (https://www.eclgs.com)

Please contact your relationship manager for further details