ECLGS 2.0 extends 20 per cent additional funding to 26 sectors

Union Finance Minister Nirmala Sitharaman is announcing Atma Nirbhar Package 3.0 in New Delhi on Thursday

The Government has extended the Emergency Credit Line Guarantee Scheme (ECLGS) through ECLGS 2.0 for the 26 sectors identified by the Kamath Committee and the healthcare sector. 


Under ECLGS 2.0 entities with outstanding credit above Rs. 50 crore and not exceeding Rs. 500 crore as on February 29, 2020, which were less than or equal to 30 days past due as on February 29, 2020, are eligible.

These borrower accounts shall be eligible for additional funding up to 20 per cent which could be fund based or non-fund based or both of their total outstanding credit (fund based only) as a collateral-free Guaranteed Emergency Credit Line (GECL), which would be fully guaranteed by National Credit Guarantee Trustee Company Limited (NCGTC). The loans provided under ECLGS 2.0 will have a 5-year tenor, with a 12-month moratorium on repayment of principal.

In addition to ECLGS 2.0, where no annual turnover ceiling has been prescribed, it has also been decided to extend ECLGS 1.0 to entities under ECLGS which had a total credit outstanding under fund based of up to Rs.50 crore as on February 29, 2020, but were previously ineligible owing to their annual turnover exceeding Rs.250 crore. All other existing terms and conditions remain unchanged.

The Scheme would be applicable to all loans sanctioned under ECLGS during the period from the date of issue of these guidelines by NCGTC to 31, 2021 or till guarantees for a number of Rs, 3,00,000 crore is sanctioned under the ECLGS taking into account both ECLGS 1.0 and 2.0, whichever is earlier.

The modified Scheme while providing an incentive to Member Lending Institutions (MLIs) to enable the availability of additional funding facility to the eligible borrowers, both MSMEs or business enterprises and identified sectors that support MSMEs, will go a long way in contributing to an economic revival, protecting jobs, and create a conducive environment for employment generation. NCGTC has issued the operational guidelines in this regard.