{"id":3815,"date":"2023-03-06T02:43:26","date_gmt":"2023-03-05T21:13:26","guid":{"rendered":"https:\/\/vajiramandravi.com\/current-affairs\/?p=3815"},"modified":"2025-03-26T19:35:36","modified_gmt":"2025-03-26T14:05:36","slug":"emergency-credit-line-guarantee-scheme-eclgs","status":"publish","type":"post","link":"https:\/\/vajiramandravi.com\/current-affairs\/emergency-credit-line-guarantee-scheme-eclgs\/","title":{"rendered":"Emergency Credit Line Guarantee Scheme (ECLGS)"},"content":{"rendered":"<h2><strong>About Emergency Credit Line Guarantee Scheme (ECLGS):<\/strong><\/h2>\n<ul>\n<li>It was <strong>launched by the Government of India in 2020<\/strong> as a special scheme in <strong>view of the Covid-19 crisis.<\/strong><\/li>\n<li><strong>Objective<\/strong>: To <strong>provide 100 percent guaranteed coverage to the banks<\/strong>, non-banking financial institutions (NBFCs), and other lending institutions <strong>to extend emergency credit to business entities that have suffered due to the Covid-19 pandemic<\/strong> and are struggling to meet their working capital requirements.<\/li>\n<li>ECLGS is <strong>under the operational domain of the Ministry of Finance<\/strong>, Department of Financial Services (DFS).<\/li>\n<li><strong>National Credit Guarantee Trustee Company Ltd (NCGTC) has been set up<\/strong> by the Union Ministry of Finance to manage and <strong>provide guarantees to these loans.<\/strong><\/li>\n<li>ECLGS was <strong>launched in different phases<\/strong> &#8211; ECLGS 1.0, ECLGS 2.0, ECLGS 3.0, and ECLGS 4.0. In different phases, the <strong>scope of this scheme was increased to include multiple sectors<\/strong>.<\/li>\n<li><strong>Sanctions\/disbursements<\/strong> are made by lending institutions <strong>based on assessment of the borrower\u2019s requirements and eligibility.<\/strong><\/li>\n<li><strong>Processing charges<\/strong>, foreclosure, and prepayment charges <strong>are waived under the scheme.<\/strong><\/li>\n<li><strong>No collateral is required for this scheme.<\/strong><\/li>\n<li><strong>ECLGS 1.0:<\/strong>\n<ul>\n<li>Under the scheme, <strong>borrowers could avail of additional credit of up to 20 percent of their overall outstanding credit<\/strong> as on February 29, 2020.<\/li>\n<li><strong>Eligibility<\/strong>: <strong>Business Enterprises<\/strong>\/<strong>MSMEs<\/strong> with <strong>outstanding loans of up to Rs 25 crore <\/strong>as of February 29, 2020, <strong>with an annual turnover cap of Rs 100 crore<\/strong> for <strong>the financial year 2019-2020.<\/strong><\/li>\n<\/ul>\n<\/li>\n<\/ul>\n<p>&nbsp;<\/p>\n<hr \/>\n<h3>Q1) What is the National Credit Guarantee Trustee Company Ltd (NCGTC) ?<\/h3>\n<p>NCGTC is a Union Government Company. It&#8217;s a private company and is classified as a company limited by shares&#8217;. It is majorly in Finance business and currently, company operations are active.Company is registered in Delhi (Delhi) Registrar Office.<\/p>\n<p><strong>Source:\u00a0<\/strong><a href=\"https:\/\/www.financialexpress.com\/economy\/centre-mulls-possible-extension-of-eclgs\/3000332\/\" target=\"_blank\" rel=\"nofollow noopener\"><u>Centre mulls possible extension of ECLGS<\/u><\/a><\/p>\n","protected":false},"excerpt":{"rendered":"<p>ECLGS provide 100% guaranteed coverage to lending institutions to extend emergency credit to business entities.<\/p>\n","protected":false},"author":5,"featured_media":3816,"comment_status":"closed","ping_status":"closed","sticky":false,"template":"","format":"standard","meta":{"_acf_changed":false,"footnotes":""},"categories":[1],"tags":[],"class_list":{"0":"post-3815","1":"post","2":"type-post","3":"status-publish","4":"format-standard","5":"has-post-thumbnail","7":"category-upsc-prelims-current-affairs","8":"no-featured-image-padding"},"acf":[],"_links":{"self":[{"href":"https:\/\/vajiramandravi.com\/current-affairs\/wp-json\/wp\/v2\/posts\/3815","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/vajiramandravi.com\/current-affairs\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/vajiramandravi.com\/current-affairs\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/vajiramandravi.com\/current-affairs\/wp-json\/wp\/v2\/users\/5"}],"replies":[{"embeddable":true,"href":"https:\/\/vajiramandravi.com\/current-affairs\/wp-json\/wp\/v2\/comments?post=3815"}],"version-history":[{"count":0,"href":"https:\/\/vajiramandravi.com\/current-affairs\/wp-json\/wp\/v2\/posts\/3815\/revisions"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/vajiramandravi.com\/current-affairs\/wp-json\/wp\/v2\/media\/3816"}],"wp:attachment":[{"href":"https:\/\/vajiramandravi.com\/current-affairs\/wp-json\/wp\/v2\/media?parent=3815"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/vajiramandravi.com\/current-affairs\/wp-json\/wp\/v2\/categories?post=3815"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/vajiramandravi.com\/current-affairs\/wp-json\/wp\/v2\/tags?post=3815"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}