Emergency Credit Line Guarantee Scheme (ECLGS)

iAbout This Scheme

ECLGS was launched under the Atma Nirbhar Bharat Abhiyan in May 2020 to provide emergency credit to MSMEs and businesses severely impacted by COVID-19. It offered 100% government-backed credit guarantee on additional loans up to 20-40% of outstanding credit with no processing fee or collateral. The scheme closed on March 31, 2023.

🎁Key Benefits

• 100% government-backed credit guarantee for emergency loans
• Additional working capital loan up to 20% of outstanding (ECLGS 1.0)
• Later extended to healthcare, hospitality sectors with higher limits
• No processing fee, no guarantee fee, no collateral required
• 4-year tenor with 1-year moratorium on principal
• Total scheme corpus of ₹5 lakh crore

✅Eligibility Criteria

• 1
  MSMEs with outstanding credit up to ₹50 crore as of Feb 29, 2020
• 2
  Businesses not in NPA status
• 3
  Extended to various sectors in subsequent tranches

📝How to Apply

❓Frequently Asked Questions