Lakshmi-Vilas-Bank Personal-NRI Premium-Banking

Lakshmi-Guaranteed Emergency Credit Line (LGECL)

The Emergency Credit Line Guarantee Scheme (ECLGS) was unveiled as part of the Rs 20 lakh crore comprehensive package announced by Finance Ministry on 13/05/2020, to aid Micro, Small and Medium Enterprises (MSMEs) sector in view of the economic distress caused by the COVID-19 pandemic. The key highlights of the scheme are as follows :

Name of the Facility Guaranteed Emergency Credit Line (GECL)
Facility Type Fund based Working Capital Term Loan

GECL facility will help the Business Enterprises (BEs)/Micro Small & Medium Enterprises (MSMEs) to augment their net working capital, to meet operational liabilities and to restart their businesses during COVID-19 crisis.

To provide Working Capital Term Loan of up to 20% of loan outstanding as on 29th February 2020 from all Member Lending Institutions (MLIs) to eligible Business Enterprises (BEs)/ Micro, Small and Medium Enterprise (MSME) borrowers, including interested PMMY borrowers, in view of COVID-19 crisis, as a special Scheme.

Eligibility norms
  • All borrower accounts (BEs/ MSMEs) with combined outstanding loans of up to Rs. 25 crores as on 29.02.2020, and annual turnover of up to Rs.100 crore in the previous financial year (2019-20) are eligible for GECL funding under the Scheme. In case accounts for FY 2019-20 are yet to be audited/ finalized, the Borrower shall submit their declaration of turnover
  • Loans provided to Business Enterprises / MSMEs constituted as Proprietorship, Partnership, registered Company, Trusts and Limited Liability Partnerships (LLPs) shall be eligible under the Scheme.
  • Loans provided in individual capacity are not covered under the Scheme.
  • Business Enterprises / MSMEs would 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 (Fund-based). Off-balance sheet and non-fund-based exposures will be excluded.
  • The Scheme is valid only for existing customers on the books of the MLI, as on 29.02.2020.Borrower accounts should be less than or equal to 60 days past due as on 29.02.2020 in order to be eligible under the Scheme. Borrower accounts which had NPA or SMA-2 status, as on 29.02.2020 shall not be eligible under the Scheme.
  • In order to be eligible, the borrower must be GST registered in all cases where such registration is mandatory. This condition will not be applicable to those borrowers who are not required to obtain GST registration.
Loan Amount
  • Maximum up to 20% of the entire fund-based outstanding as on 29.02.2020.
  • The maximum loan that can be considered under the scheme is Rs. 5 crores.
Repayment Terms
  • Tenor: Maximum 4 years from the date of disbursement.
  • Moratorium: Initial moratorium of 12 months for principal only.
  • The principal shall be repaid in 36 equal monthly installments after the moratorium period is over.
  • Interest is payable as and when due including during moratorium.
Interest Rate
  • Linked to EBLR, present effective rate at 9.25% p.a.
  • Maximum at 9.25% p.a., during the entire tenor of the loan.
  • 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. i.e., the existing securities and guarantees already charged to the existing limits of the borrower will be extended to cover the GECL loan also on second charge basis.
  • No additional collateral shall be asked for additional funding under GECL.
Government Guarantee

The entire funding provided under GECL shall be provided with a 100% credit guarantee coverage by NCGTC under the Scheme.



Processing fee/ Pre-payment penalty


Guarantee fee payable to credit guarantee trust


Validity of scheme

Scheme is valid up to 31.10.2020 or on reaching the threshold stipulated as per scheme under the GECL, by NCGTC (Rs.3 lakh crore) whichever is earlier.

NCGTC guidelines

Please visit

For further details on the GECL product, please contact your Branch. We will be glad to assist you.