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Emergency Credit Line Guarantee Scheme (ECLGS) for existing Ford Credit Wholesale Dealers
 

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
Emergency Credit Line Guarantee Scheme (ECLGS) (hereinafter referred as the ‘Scheme’) and the credit product for which guarantee would be provided under the Scheme shall be named as ‘Guaranteed Emergency Credit Line (GECL)’

Purpose
The Scheme is a specific response to the unprecedented situation COVID-19. It seeks to provide additional liquidity, thereby enabling MSMEs to meet their operational liabilities and restart their businesses.

Nature of Facility
Fund Based: Working Capital Term Loan

Eligible Borrower
MSMEs/ Business Enterprises which are constituted as Proprietorships, Partnerships, Registered Companies, Trusts and Limited Liability Partnerships (LLPs), and also interested borrowers under PMMY.

Eligibility Criteria

  • All Business Enterprises /MSME borrower accounts with combined outstanding loans of up to Rs. 25 crore as on 29.2.2020, and annual turnover of up to Rs. 100 crore for FY 2019-20 are eligible for the Scheme.
  • Total Outstanding Amount would comprise of the on-balance sheet exposure. Off-balance sheet and non-fund-based exposures will be excluded. 
  • Loans provided to Business Enterprises / MSMEs constituted as Proprietorship, Partnership, registered company, trusts and Limited Liability Partnerships (LLPs) shall be eligible under the Scheme.
  • Business Enterprises / MSMEs would include loans covered under Pradhan Mantri Mudra Yojana extended on or before 29.2.2020, and reported on the MUDRA portal. 
  • Loans provided in individual capacity are not covered under the Scheme. 
  • The Scheme is valid for existing customers on the books of the MLIs.
  • Borrower accounts should be less than or equal to 60 days past due as on 29th February, 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.
  • Business Enterprises / MSME borrower must be GST registered in all cases where such registration is mandatory. This condition will not apply to Business Enterprises / MSMEs that are not required to obtain GST registration
  • To be eligible under the Scheme it is not necessary that the existing loans of the borrowers should be covered under the ECLGS of NCGTC.

Credit Limit
Credit under GECL would be up to 20% of the borrower’s total outstanding credit up to Rs. 25 crores, excluding off-balance sheet and non-fund-based exposures, as on 29th February, 2020, subject to the borrower meeting all the eligibility criteria. The maximum is Rs. 5 cr.

Tenure
The tenor of loans provided under this scheme shall be four years from the date of disbursement.

Moratorium
A moratorium period of one year on the principal amount shall be provided under this scheme.
Interest shall, however, be payable during the moratorium period. The principal shall be repaid in 36 instalments after the moratorium period is over.

Margin
NIL for ECLGS.
However, margin for the existing limits will continue as per the sanctioned terms.

Scheme Validity
The Scheme would be applicable to all loans sanctioned under GECL during the period from May 23, 2020 to 31st October, 2020, or till an amount of Rs. 3 lakh crore is sanctioned under GECL by all MLIs, whichever is earlier.

Insurance
Comprehensive insurance of all the securities charged to the Bank/NBFC should be taken with Bank/NBFC clause.

Interest Rate
For NBFCs, the interest rate on GECL shall not exceed 14% per annum

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

Processing Fee
Nil

Prepayment Charges
Nil

NCGTC Guidelines
Please visit https://www.eclgs.com/

Scheme FAQ
Please visit https://www.eclgs.com/documents/FAQs_on_ECLGS-Updated_as_on_06.06.2020.pdf

 

If you are an existing Ford Credit Wholesale Dealer, then please contact us for more details on fcicare@ford.com

 

Emergency Credit Line Guarantee Scheme (ECLGS) for existing Ford Credit Wholesale Dealers
 

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
Emergency Credit Line Guarantee Scheme (ECLGS) (hereinafter referred as the ‘Scheme’) and the credit product for which guarantee would be provided under the Scheme shall be named as ‘Guaranteed Emergency Credit Line (GECL)’

Purpose
The Scheme is a specific response to the unprecedented situation COVID-19. It seeks to provide additional liquidity, thereby enabling MSMEs to meet their operational liabilities and restart their businesses.

Nature of Facility
Fund Based: Working Capital Term Loan

Eligible Borrower
MSMEs/ Business Enterprises which are constituted as Proprietorships, Partnerships, Registered Companies, Trusts and Limited Liability Partnerships (LLPs), and also interested borrowers under PMMY.

Eligibility Criteria

  • All Business Enterprises /MSME borrower accounts with combined outstanding loans of up to Rs. 25 crore as on 29.2.2020, and annual turnover of up to Rs. 100 crore for FY 2019-20 are eligible for the Scheme.
  • Total Outstanding Amount would comprise of the on-balance sheet exposure. Off-balance sheet and non-fund-based exposures will be excluded. 
  • Loans provided to Business Enterprises / MSMEs constituted as Proprietorship, Partnership, registered company, trusts and Limited Liability Partnerships (LLPs) shall be eligible under the Scheme.
  • Business Enterprises / MSMEs would include loans covered under Pradhan Mantri Mudra Yojana extended on or before 29.2.2020, and reported on the MUDRA portal. 
  • Loans provided in individual capacity are not covered under the Scheme. 
  • The Scheme is valid for existing customers on the books of the MLIs.
  • Borrower accounts should be less than or equal to 60 days past due as on 29th February, 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.
  • Business Enterprises / MSME borrower must be GST registered in all cases where such registration is mandatory. This condition will not apply to Business Enterprises / MSMEs that are not required to obtain GST registration
  • To be eligible under the Scheme it is not necessary that the existing loans of the borrowers should be covered under the ECLGS of NCGTC.

Credit Limit
Credit under GECL would be up to 20% of the borrower’s total outstanding credit up to Rs. 25 crores, excluding off-balance sheet and non-fund-based exposures, as on 29th February, 2020, subject to the borrower meeting all the eligibility criteria. The maximum is Rs. 5 cr.

Tenure
The tenor of loans provided under this scheme shall be four years from the date of disbursement.

Moratorium
A moratorium period of one year on the principal amount shall be provided under this scheme.
Interest shall, however, be payable during the moratorium period. The principal shall be repaid in 36 instalments after the moratorium period is over.

Margin
NIL for ECLGS.
However, margin for the existing limits will continue as per the sanctioned terms.

Scheme Validity
The Scheme would be applicable to all loans sanctioned under GECL during the period from May 23, 2020 to 31st October, 2020, or till an amount of Rs. 3 lakh crore is sanctioned under GECL by all MLIs, whichever is earlier.

Insurance
Comprehensive insurance of all the securities charged to the Bank/NBFC should be taken with Bank/NBFC clause.

Interest Rate
For NBFCs, the interest rate on GECL shall not exceed 14% per annum

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

Processing Fee
Nil

Prepayment Charges 
Nil

NCGTC Guidelines
Please visit https://www.eclgs.com/

Scheme FAQ
Please visit https://www.eclgs.com/documents/FAQs_on_ECLGS-Updated_as_on_06.06.2020.pdf

 

If you are an existing Ford Credit Wholesale Dealer, then please contact us for more details on fcicare@ford.com