22) Emergency Credit Line Guarantee scheme (ECLGS) Flashcards Preview

16) May 2020 > 22) Emergency Credit Line Guarantee scheme (ECLGS) > Flashcards

Flashcards in 22) Emergency Credit Line Guarantee scheme (ECLGS) Deck (7)
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1
Q

To whom is this Credit line guarantee scheme related ?

A

To MSMEs and MUDRA borrowers

2
Q

Aim ?

A

To mitigate the economic distress being faced by about 45 lakh MSMEs by providing them additional funding upto 3lakh cr in the form of a fully guaranteed emergency credit line

3
Q

Duration ?

A

4yrs with moratorium of 1yr on the principal amount

4
Q

Eligibility ?

A

1) All MSME borrower accounts with outstanding credit of upto 25cr
2) Annual turnover of upto 100cr

5
Q

How much will these MSME’s get as credit ?

A

Upto 20% of fresh loans on their entire outstanding credit

6
Q

Who provides guarantee against losses ?

A

National Credit Guarantee Trustee Company (NCGTC)

7
Q

Interest rates ?

A

Banks and Financial institutions can put 9.25% max interest rate
NBFCs can put upto 14% interest rates

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