Emergency Credit Line Guarantee Scheme 2023 Online Apply | Emergency Credit Line Guarantee Scheme Check Loan Tenure | Emergency Credit Line Guarantee Scheme Interest Rate Applicable | Emergency Credit Line Guarantee Scheme Allocated Budget and All Details |
The Central Government has launched the ECLGS so that the citizens or entrepreneurs who have started their businesses will be able to recover the losses which have occurred due to the pandemic of the covid-19 virus. Financial banks and non-banking companies will be entrusted with the task of providing loans to entrepreneurs.
Today through this article we will provide you with all types of information about the Emergency Credit Line Guarantee Scheme 2023 like Purpose, Eligibility Criteria, Benefits, Features and Important Documents, etc. Apart from this, we will share with you the process of applying online for this scholarship. To get complete information about this scholarship initiative, read this article till the end.
Emergency Credit Line Guarantee Scheme 2023
As a part of the Aatmanirbhar Bharat Abhiyan package, the government has launched the Emergency Credit Line Guarantee Scheme so that the entrepreneurs who have opened their micro, small, and medium enterprises will be able to get loans provided by the lending institutions. The tenure of the loans given to the entrepreneurs will be 4 years.
ECLGS has been launched by the government so that business enterprises will be able to get 100% funds for their business upliftment. For the successful implementation, the government has sanctioned an amount of Rs. 3 lakh crores. This will provide relief to the coronavirus sufferers caused due to the lockdown which results in putting down business growth.
Highlights Of ECLGS
The highlights of this scheme are as follows:-
| Name Of The Scheme | Emergency Credit Line Guarantee Scheme |
| Known As | Emergency Credit Line Guarantee Yojana ECLGS |
| Launched Under | Central Government |
| Delegated Ministries | Ministry of Financial Services Ministry of Finance |
| Allocated Portal | ECLGS Portal |
| Objective | To provide relief to the sufferers of covid-19 due to lockdown |
| Benefit | Entrepreneurs will be able to get upliftment in their businesses |
| Applicable To | Citizens of India |
| Beneficiaries | Business Entrepreneurs |
| Categories Of Beneficiaries | MSMEs Beneficiaries Of PMMY Proprietorship PartnershipRegistered Company T rusts and Limited Liability Partnerships (LLPs) |
| Mode Of Transfer | DBT (Direct Benefit Transfer) |
| Payment Mechanism | e-payment mechanism |
| Form of Benefit | Business Loans |
| Amount of benefit | Variable Assistance |
| Tenure Of Repayment | 4 Years |
| Interest Rate | 9.25% to 14% |
| Allocated Budget | Rs. 3 Lakh Crores |
| Implementation Agency | National Credit Guarantee Trustee Company Ltd (NCGTC) |
| Hosting Site | National Information Center (NIC) |
| Mode Of Application | Online |
| Contact Number | 0253 6636 594 |
| Email Id | [email protected] |
| Official Website | www.eclgs.com |
Objectives Of Emergency Credit Line Guarantee Scheme
The main objective of launching the ECLGS is to provide some sort of help and support to business entrepreneurs who have started their businesses or enterprises but whose growth has been forbidden due to the covid-19 virus which results in lockdown. To them, the government will start providing or lending loans at the 9.25% to 14% interest rate.
Another objective of launching the Emergency Credit Line Guarantee Scheme is to make India an Aatmanirbhar Bharat by facilitating the growth of business enterprises that have been newly opened. Loans will be provided to the borrowers which have to be returned by them within 4 years. Applicants of PMMY will also be considered eligible.
Tenure Of Loan
The loans provided to the entrepreneurs have to be repaid by them within the stipulated amount of time or tenure which has been prescribed by the government to them. Applicants can repay the amount of the loan within 4 years from the date of borrowing. The rate of interest will be charged on the annual basis.
Interest Rate Applicable
There are some limitations on the rate of interest which will be applicable to the entrepreneurs borrowing loans from the lending institutions. They will need to repay the amount of the loan along with the rate of interest charged on its basis of duration. A 9.25% interest rate will be charged on the lending amount.
National Credit Guarantee Trustee Company Ltd (NCGTC)
NCGTC will act as an implementation agency for carrying out various credit guarantee trust funds for the borrowers. National Credit Guarantee Trustee Company Ltd was incorporated under the Indian Companies Act, 1956 with a capital of Rs. 10 crores. This has been under the supervision of the Department of Financial Services.
Trusteeship Management of NCGTC
The trusteeship management details of NCGTC are as follows:-
- Credit Guarantee Fund for Skill Development (CGFSD)
- Credit Guarantee Fund for Education Loans (CGFEL)
- Credit Guarantee Fund for Factoring (CGFF)
- Credit Guarantee Fund for Micro Units (CGFMU)
- Credit Guarantee Fund for Stand Up India (CGFSI)
- Emergency Credit Line Guarantee Scheme (ECLGS)
- Loan Guarantee Scheme for Covid Affected Sectors (LGSCAS)
Allocated Budget
For providing relief to the sufferers of the covid-19 virus, the government has launched this scheme as a part of the atmanirbhar bharat package. The government has also sanctioned the amount of the budget for the successful implementation of this scheme. Rs. 3 lakh crores have been sanctioned by the government in the form of an allocated budget for this scheme.
Benefits Of ECLGS
The benefits of this scheme are as follows:-
- Entrepreneurs will be able to cover the loss that occurred due to the covid-19 virus and the business expenses.
- Emergency Credit Line Guarantee Scheme will provide social security provisions to the applicants having opened their enterprises or small business ventures.
- This scheme will also be beneficial for the applicants for Pradhan Mantri Mudra Yojana.
- The applicant can repay the amount of the loan within a period of 4 years.
- National Credit Guarantee Trustee Company will be entrusted with the task of providing or lending loans to the borrowers.
- Loans will also be provided to the professionals such as doctors, lawyers, and chartered accountants for business purposes.
- Businessmen will be able to cover the business losses that occurred due to the lockdown.
- Yet around 60.67 lakhs of borrowers have been able to get loans provided under the ECLGS.
- Applicants can get loans from both Non-Banking Financial companies and lending institutions such as banks.
- The credit Guarantee Programme will facilitate the finance for the relevant borrowers.
Features Of Emergency Credit Line Guarantee Scheme
The features of this scheme are as follows:-
- The Central Government has launched the ECLGS.
- This scheme has been launched for providing or lending loans to entrepreneurs who want to start up their business ventures.
- The maximum limit to get loans will be Rs. 5 crores.
- The interest rate charged on it will have to be paid out by the applicant.
- 9.25% of the interest rate will be charged on the amount of the loan on the annual basis.
- The tenure of the loan amount will be 4 years which implies that the borrower will have to repay the amount of the loan within the 4 years.
- National Credit Guarantee Trustee Company will act as a nodal agency for providing or disbursing loan amounts to the borrowers.
- The applicant will need to repay the amount of the loan with an interest rate in 36 equal installments.
- No processing fee will be charged for lending loans to the applicants of the Emergency Credit Line Guarantee Scheme.
- For getting more information, one can visit the official website.
Eligibility Criteria
The applicants will need to possess the mentioned below points for getting registration under this scheme:-
- The applicant must be an entrepreneur holding a venture business or a small business venture/ enterprise.
- Loans will be provided to the Proprietorship, Partnerships, registered companies, trusts, and Limited Liability Partnerships (LLPs).
- This scheme will also be applicable to the beneficiaries of PMMY.
- The applicant must be GST registered in all cases.
Important Documents
Some of the important documents to apply online under this scheme are as follows:-
- Aadhar Card
- DOB certificate
- Annual Income Certificate
- Latest Passport Size Photograph
- Bank accounts details
- Fee Receipt
- Active Mobile number for receiving OTPs
- Working Email Id for future reference
- Latest Passport Size Photograph
Process To Apply Online Under Emergency Credit Line Guarantee Scheme
As this scholarship has been recently launched, no such information has been received by using social networking resources. As soon as any information related to the application procedure required to apply online under the Emergency Credit Line Guarantee Scheme will be launched, we will update you through this article otherwise the applicant can visit the Official Website.
Lodging Grievance
The applicants will need to follow the mentioned-below points for lodging grievances:-
- In the first step, the applicant will need to visit the official website.
- Now you will be able to see the homepage on your screen.
- Scroll throughout the page.
- Look under the section of Grievances Corner.
- Now click on the link to Grievances – ECLGS.
- Then the grievance page form will get displayed on your screen.
- Fill this form after reading each column carefully such as:-
- Name of the borrower
- Banking
- State
- District
- Address
- Email Id
- Pin Code
- Mobile Number
- Click on the Submit button.
Contact Information
In case any queries and questions come to your mind regarding the Emergency Credit Line Guarantee Scheme, then you may contact this mentioned contact number and email Id:-
- Contact Number:- 0253 6636 594
- Email Id:- [email protected]