Solution

The ECLGS provides for the Guaranteed Emergency Credit Line (GECL) facility. The GECL is a loan for which 100% guarantee is provided by the National Credit Guarantee Trustee Company (NCGTC) to Member Lending Institutions (MLIs) - banks, financial institutes and NBFCs. ·         The loans are extended in the form of additional working capital term loan facility in case of banks and additional term loan facility in case of NBFCs to eligible Micro, Small and Medium Enterprises (MSMEs)/business enterprises and interested  Pradhan Mantri Mudra Yojana  (PMMY) borrowers. ·         First-time borrowers and Non-Performing Asset (NPA) accounts cannot raise funds under the scheme. ·         The tenor of loans provided under the GECL facility is four years from the date of disbursement. A moratorium period of one year on the principal amount is provided. ·         Interest rates of banks and financial institutions have been capped at 9.25% per annum, while NBFCs can lend at a maximum of 14% per annum.