Emergency Credit Line Guarantee Scheme (ECLGS) is a scheme launched by the Government of India under ‘Atmanirbhar Bharat Abhiyan’ that aims at mitigating the economic distress faced by businesses/Micro, Small and Medium Enterprises (MSMEs) by providing additional funding in the form of a fully ECLGS.

The scheme would be applicable to all loans sanctioned under ECLGS during the period from May 23 to Oct 31, 2020, or till an amount of Rs. 3 lakh crore is sanctioned under ECLGS, whichever is earlier.

Yes, loans under PMMY extended on or before Feb 29, 2020, and reported on the MUDRA portal will be covered under the scheme.

No, you do not have to pay any processing fee for the loan availed under ECLGS scheme.

No additional collateral is required for additional credit extended under ECLGS.

• You have a total credit outstanding of Rs 25 crore or less as on Feb 29, 2020 
• Your turnover for 2019-20 was up to Rs 100 crore
• You have a GST registration or were not required to obtain such GST registration.

Udyog Aadhaar or recognition as MSME is not required under this scheme.

No. Typically, lending institutions get funds from banks/Non-Banking Financial Companies (NBFCs) through on-lending, refinance, asset purchase, securitisation, assignment, etc. There are, therefore, other windows available including the Partial Credit Guarantee Scheme and the Special Liquidity Facility.