The Emergency Credit Line ( Collateral Free Working Capital Term Loan) processing is started with Banks from this week. ( All govt.banks have started, Pvt Sector is expected to start in next week approx)
- Existing msme customers having outstanding loans as on 29.2.2020 with Combined all banks/NBFC exposure below Rs.25 Crore.
- Holding of Udyog Aadhar MSME registration is mandatory.
- Collateral free with credit guarantee by NCGTC
- Extension of charge on entire present and future current asset of company/firm
- Additional WCTL granted under this scheme shall rank paripassu with existing credit facilities and securities.
- Fresh charge on assets to be created within 3 months
Govt. guarantee fees and bank document charges : NIL
Max. Amount Eligible :
Upto Maximum of 20% of utilised limit for Working Capital, Term Loans, Business Loans. Pls.note 20% is the upper cap, bank is free to decide lower amount as per financials/eligibility/cash flows and other credit appraisal aspects.
Process to apply as follows:
- Every Bank has rolled out their application form for ECG Limit.
- Application with following documents to be submitted to the banker for evaluation:
a. Latest CA Certified Stock statements
b GST Returns filed till last month
c Cash flow statement of estimated expenses
d CMA data with financial projection for 5 years
e Declaration for Turnover for FY 2019-20 certified ( if audited financials are not ready) or Audited Financial statement 19-20
f. MSME Udyog Aadhar Certificate
g. KYC of borrower
h. Sanction letter of all ongoing loans with other banks
Last date – Earliest of 31.10.2020 or Rs.3 lakh crore limit exhaused ( advisable to apply at the earliest).
For any queries/assistance, kindly connect with us at 98200 88394
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