ECLGS Scheme by InCred | ECLGS Full Form

ECLGS Scheme

ECLGS Scheme by InCred is performed under the Central Government and RBI guidelines. This is financial revival plan offered in times of economic emergency.

ECLGS Full Form

ECLGS (Emergency Credit Line Guarantee Scheme)

What is InCred ECLGS Scheme, and how does it work?

The InCred Emergency Credit Line Guarantee Scheme (ECLGS) was established as part of a Rs 20 lakh crore comprehensive package released by the Finance Ministry on May 13, 2020, to assist Micro, Small and Medium Enterprises (MSMEs) in the wake of the COVID-19 pandemic’s economic suffering.

eclgs scheme
eclgs scheme

Loan Type:

Working capital term loan based on funds.

ECLGS Eligibility:

  • The Scheme is open to all Business Enterprises/MSME borrower accounts having combined outstanding loans of up to Rs. 25 crore as of February 29, 2020, and annual turnover of up to Rs. 100 crore for FY 2019-20.
  • The on-balance sheet exposure would be included in the Total Outstanding Amount. Non-fund-based and off-balance sheet exposures will be excluded.
  • The Scheme will cover loans made to Business Enterprises / MSMEs that are organized as a sole proprietorship, partnership, registered company, trust, or Limited Liability Partnership (LLP).
  • Loans made under the Pradhan Mantri Mudra Yojana and reported on the MUDRA portal on or before 29.2.2020 will be classified as Business Enterprises / MSMEs.
  • The Scheme does not cover loans made in an individual capacity. Customers on the books of MLIs are eligible for the Scheme.
  • To be eligible for the Scheme, borrower accounts must be less than or equal to 60 days past due as of February 29, 2020.
  • Borrower accounts that were NPA or SMA-2 as of February 29, 2020 would not be eligible for the Scheme.
  • In all circumstances where GST registration is required, business enterprises / MSME borrowers must be GST registered.
  • This requirement will not apply to businesses or small businesses that are not required to register for GST.

It is not necessary for the borrowers’ existing loans to be covered by NCGTC’s ECLGS in order to be eligible for the Scheme.


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Limitation on credit:

If the borrower met all qualifying parameters, credit under GECL could be up to 20% of the borrower’s total outstanding credit up to Rs. 25 crores as of February 29, 2020, excluding off-balance sheet and non-fund-based exposures. The highest amount is Rs. 5 crores.

Rate of Interest:

External benchmark linked rates are +1 percent with a maximum of 9.25 percent each year.

Guarantee from the government.

Under the Scheme, NCGTC will cover the whole money supplied under GECL with a 100 percent credit guarantee.


4 years maximum from the date of disbursement. A one-year moratorium on the main amount is in effect. During the moratorium period, however, interest must be paid.

After the moratorium period expires, the principal will be repaid in 36 equal payments. Interest will be paid out as it accumulates.

The Scheme’s Validity

The scheme was valid until October 31, 2020, or until all banks/NBFCs sanctioned a total of Rs 3,00,000 crore under the GECL Scheme (as notified by NCGTC), whichever came first.

Prepayment penalty/processing fee

  • Nil
  • The credit guarantee trust charges a guarantee fee.
  • There is no charge for the Guarantee.

Official Website

InCred Website: Click Here

ECLGS Website: Click Here


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