Emergency Credit Line Guarantee Scheme (ECLGS)

The ongoing effects of the global pandemic are prevalent across all globe and everyone is impacted. Gradually we are all trying to adapt and restart our life and livelihood. Micro and Small entrepreneurs are most impacted in these tough time. This scheme is specially formulated by the Government of India to help MSMEs in this unprecedented situation.

Adani Capital Private Limited (ACPL) offers you the facility to avail of additional loans under the Emergency Credit Line Guarantee Scheme (ECLGS).

Sr. No Parameter Details
1. Name of the facility Guaranteed Emergency Credit Line (GECL)
2. Loan Type Additional Term Loan facility as a Special Scheme in view of Covid-19 crisis
3. Validity of Scheme Scheme is valid up to 31.10.2020 or on reaching the threshold stipulated as per scheme under the GECL, whichever is earlier
4. Purpose Working Capital (to restart the business after the impact of COVID-19)
5. Eligibility

All borrower accounts MSMEs) with combined outstanding loans of up to Rs. 25 crore as on 29.2.2020, and annual turnover of up to Rs.100 crore in the previous financial year (2019-20) are eligible for GECL funding under the Scheme. In case accounts for FY 2019-20 are yet to be audited/finalised, the Adani capital (ACPL) may rely upon Borrower’s declaration of turnover.

Loans provided to Business Enterprises / MSMEs constituted as Proprietorship, Partnership, registered company, trusts and Limited Liability Partnerships (LLPs) shall be eligible under the Scheme.

Loans taken in Individual name are not eligible

The Scheme is valid only for existing customers on the books of the MLI, as on 29.02.2020 and within 60 days of becoming delinquent.

Borrower accounts should be less than or equal to 60 days past due as on 29.02.2020 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.

For loans having co-applicant, only those existing loans where entity is the primary co-applicant are covered under the Scheme for additional emergency funding.

In order to be eligible, the borrower must be GST registered in all cases where such registration is mandatory. This condition will not apply to borrowers that are not required to obtain GST registration.

Loans taken in individual capacity are not covered under the Scheme

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.

6. Loan Amount Loan Amount Maximum up to 20% of the entire outstanding as on 29.02.2020. The maximum is Rs. 5 cr.
7. Disbursement May be in tranches (maximum 4) depending on end use
8. Repayment

Tenor: Maximum 4 years from the date of disbursement

Moratorium: 12 months for principal only, interest is payable at monthly intervals

After moratorium, principal and interest shall be repaid in 36 equated installments.

9. Margin Nil
10. Interest Rate 14% p.a.
11. Security No additional collateral for funding under GECL.
12. Processing fee/ Pre-payment penalty Nil
13. Miscellaneous

In case a borrower has existing limits with multiple lenders, GECL may be availed either through one lender or multiple lenders depending upon the agreement between the borrower and the MLI.

In case the borrower wishes to take from any lender an amount more than the proportional 20% of the outstanding credit that the borrower has with that particular lender, a No Objection Certificate (NOC) would be required from all other lenders

For further details on the GECL product please contact our Branch/ contact our call (18002100444) centre and we will be glad to assist you.