Chandigarh: 03.06.2020: In order to provide collateral free loan to Business Enterprises (BEs)/MSMEs (including PMMY borrowers) affected due to Covid 19, Government of India through Ministry of Finance, Department of financial services has introduced the Emergency Credit Line Guarantee Scheme (ECLGS). In line with the guidelines of ECLGS Scheme, a new product Guaranteed Emergency Credit Line has been introduced by State Bank of India and is available in all branches where borrower is maintaining his/her account. The scheme is aimed at helping stressed existing borrowers of State bank of India, affected by the COVID 19, who are not in default, with standard accounts with overdue up to 60 days are eligible to take these loans. Existing borrowers with up to 25 crores of total borrowing with an annual turnover up to Rs 100 Cr in the previous financial year (2019-0) can avail an additional 20 percent of the loan outstanding of the bank as on 29 Feb 2020 with 100 percent guarantee coverage by NCGTC. Loans will have four-year tenor including one-year moratorium of repayment. Interest rate charged by the bank will be EBLR (presently 7.05%) +75 bps (present effective rate 7.80%), capped at 9.25% during entire tenor. The principal shall be repaid in 36 equal instalments after the moratorium period is over. Prepayment allowed with no additional charges to borrower. In order to be eligible, the borrower must be GST registered in all cases where such registration is mandatory.

The scheme is available up to 31.10.2020.