About Emergency Credit Line Guarantee Scheme (ECLGS):
- It was launched by the Government of India in 2020 as a special scheme in view of the Covid-19 crisis.
- Objective: To provide 100 percent guaranteed coverage to the banks, non-banking financial institutions (NBFCs), and other lending institutions to extend emergency credit to business entities that have suffered due to the Covid-19 pandemic and are struggling to meet their working capital requirements.
- ECLGS is under the operational domain of the Ministry of Finance, Department of Financial Services (DFS).
- National Credit Guarantee Trustee Company Ltd (NCGTC) has been set up by the Union Ministry of Finance to manage and provide guarantees to these loans.
- ECLGS was launched in different phases – ECLGS 1.0, ECLGS 2.0, ECLGS 3.0, and ECLGS 4.0. In different phases, the scope of this scheme was increased to include multiple sectors.
- Sanctions/disbursements are made by lending institutions based on assessment of the borrower’s requirements and eligibility.
- Processing charges, foreclosure, and prepayment charges are waived under the scheme.
- No collateral is required for this scheme.
- ECLGS 1.0:
- Under the scheme, borrowers could avail of additional credit of up to 20 percent of their overall outstanding credit as on February 29, 2020.
- Eligibility: Business Enterprises/MSMEs with outstanding loans of up to Rs 25 crore as of February 29, 2020, with an annual turnover cap of Rs 100 crore for the financial year 2019-2020.
Q1) What is the National Credit Guarantee Trustee Company Ltd (NCGTC) ?
NCGTC is a Union Government Company. It’s a private company and is classified as a company limited by shares’. It is majorly in Finance business and currently, company operations are active.Company is registered in Delhi (Delhi) Registrar Office.
Source: Centre mulls possible extension of ECLGS
Last updated on July, 2025
→ UPSC Notification 2025 was released on 22nd January 2025.
→ UPSC Prelims Result 2025 is out now for the CSE held on 25 May 2025.
→ UPSC Prelims Question Paper 2025 and Unofficial Prelims Answer Key 2025 are available now.
→ UPSC Calendar 2026 is released on 15th May, 2025.
→ The UPSC Vacancy 2025 were released 1129, out of which 979 were for UPSC CSE and remaining 150 are for UPSC IFoS.
→ UPSC Mains 2025 will be conducted on 22nd August 2025.
→ UPSC Prelims 2026 will be conducted on 24th May, 2026 & UPSC Mains 2026 will be conducted on 21st August 2026.
→ The UPSC Selection Process is of 3 stages-Prelims, Mains and Interview.
→ UPSC Result 2024 is released with latest UPSC Marksheet 2024. Check Now!
→ UPSC Toppers List 2024 is released now. Shakti Dubey is UPSC AIR 1 2024 Topper.
→ Also check Best IAS Coaching in Delhi