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Emergency Credit Line Guarantee Scheme (ECLGS)

Central Scheme (All India) Finance Application Mode: ONLINE Active
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This profile has been independently compiled from official gazette notifications and verified web domains. Source Authority Link: www.mof.gov.in Authority: Ministry of Finance • State/Region: Central Scheme (All India) • Last Audited: 26 Jul 2026

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The Emergency Credit Line Guarantee Scheme (ECLGS) offers a 100 % guarantee cover to scheduled commercial banks and NBFCs for additional working‑capital loans to distressed enterprises, facilitating collateral‑free financing at concessional rates.

Detailed Summary

Overview

ECLGS is administered by the National Credit Guarantee and Tranche Capital (NCGTC) under the Ministry of Finance. It aims to preserve liquidity for businesses affected by economic disruptions by guaranteeing bank‑extended working‑capital loans.

Objectives

  • Stabilise cash‑flows of affected enterprises.
  • Facilitate rapid credit disbursement without additional security.

Mechanism

Participating banks may extend additional credit lines to eligible borrowers. NCGTC guarantees 100 % of the sanctioned amount, subject to scheme‑specific ceilings (₹2 crore for MSMEs, ₹5 crore for larger enterprises).

Documentation

Borrowers must submit a guarantee application, latest audited financial statements, and verifiable evidence of distress such as a decline in revenue or supply‑chain disruption.

Key Benefits & Financial Assistance

Comparison Criteria Benefits
Key Benefits
  • 100 % guarantee cover on additional working‑capital loans
  • Collateral‑free financing
  • Concessional interest rates as per scheme guidelines
  • Repayment tenure extended up to five years
  • Applicable to both new and existing credit lines

Eligibility Criteria Profile

Comparison Criteria Eligibility
  • Existing borrower of a scheduled commercial bank or NBFC participating in the scheme
  • Outstanding loan ≤ ₹2 crore for MSMEs or ≤ ₹5 crore for larger enterprises
  • Demonstrated impact of economic distress (e.g., revenue decline, supply‑chain disruption)
  • No default on current loan obligations
  • Business, MSME or MUDRA borrower with an active credit facility

Application Process Guide

  1. Submit guarantee application, latest audited financial statements and distress evidence to the lending bank.
  2. Bank verifies eligibility and forwards the request to NCGTC.
  3. NCGTC reviews and issues guarantee cover within the stipulated turnaround time.
  4. Bank disburses the additional working‑capital loan upon guarantee issuance.
  5. Borrower repays as per the agreed extended tenure.

Common FAQs regarding this Yojana

Existing borrowers of scheduled commercial banks or NBFCs that have an active credit facility and satisfy the loan‑size and distress criteria are eligible.

The scheme guarantees up to 100 % of the additional working‑capital loan, subject to a ceiling of ₹2 crore for MSMEs.

NCGTC aims to issue the guarantee within 7‑10 working days after receiving a complete request from the lending bank.