Emergency Credit Line Guarantee Scheme of Rs. 3 lakh crore
Loans under PMMY extended on or before 29.2.2020, and reported on the MUDRA portal covered under the Scheme.
This is a pre-approved loan. An offer will go out from the MLI to the eligible borrowers for a pre- approved loan which the borrower may choose to accept. If the MSME accepts the offer, it will be required to complete requisite documentation.
(i) By way of additional working capital term loans (in case of banks and FIs)
(ii) By way of additional term loans (in case of NBFCs)
Borrowers not eligible
✓ Loans provided in individual /personal capacity
✓ Business Enterprises / MSME borrower accounts which had NPA or SMA-2 status as on 29.02.2020
+1% subject to a maximum of 9.25% per annum
Tenor: Four years from the date of disbursement. No pre-payment penalty.
Moratorium period of one year on the principal amount. Interest payable during the moratorium period. The principal shall be repaid in 36 instalments after the moratorium period is over.
NCGTC will not charge any guarantee fee under the Scheme.
No processing fee shall be charged by lenders.
No additional collateral shall be asked by MLIs for additional credit extended under GECL.
Approval of RBI has been requested for assigning zero risk weight to the credit extended under GECL.
The credit under GECL 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.
75% of the guaranteed amount will be paid by NCGTC within 30 days of an eligible claim. Balance 25% will be paid on conclusion of recovery proceedings or till the decree gets time barred, whichever is earlier.
The scheme does not cover the off-balance sheet exposure. Only on balance sheet exposures outstanding as on 29th Feb, 2020 are eligible to be covered under the scheme.
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