Government of India and RBI has taken various measures for combating the challenges faced by the Indian economy due to COVID-19 crisis. As part of relief measure Department of Financial Service has introduced the Emergency Credit Line Guarantee Scheme (ECLGS) for providing 100% guarantee coverage for additional working capital term loans to eligible borrowers. In line with the guidelines of ECLGS scheme, a new product KBL- GECL (Guaranteed Emergency Credit Line) has been introduced by our Bank to provide additional Working Capital term Loan (WCTL) facility to COVID affected borrowers. The key highlights of the scheme are as follows:
|Name of the facility||KBL GECL 1.0 Scheme|
|Facility Type||Working Capital Term Loan|
|Validity of the Scheme||The scheme will be in force up to 31.03.2021 or till the guarantee for an amount of Rs.3,00,000 Crore (as announced by Finance Ministry under COVID-19 Economic package) is sanctioned under GECL, across all eligible MLIs (Money Lending Institutions) whichever is earlier.|
|Purpose||To mitigate economic distress being faced by MSMEs/Business Enterprises due to COVID-19 pandemic.|
|Limit of Advance||Limit would be up to 20% of their entire outstanding credit under Fund Based exposure up to Rs. 50.00 Crore with all money lending institution as on 29.02.2020, subject to maximum of Rs. 10.00 Crore.
Note: NOC from other MLIs shall be submitted if the borrower is willing to avail the entire eligible GECL limit with our bank.
|Period||4 years with moratorium period of 1 year on the principal amount.|
|Guarantee Coverage||The National Credit Guarantee Trustee Company Limited (NCGTC) shall provide 100% guarantee coverage on the outstanding amount for the credit facility provided under the scheme.
For NCGTC Guidelines please visit https://www.eclgs.com/
|Disbursal||A separate loan account shall be opened and the borrower can avail the sanctioned amount in one go. The facility shall be made available as Fund Based Limit Only.|
|Repayment||Repayable in 36 installments after initial moratorium period of one year on the principal amount. Interest to be serviced by the borrower as and when applied (including during the moratorium period)|
|Rate of Interest||8.96% p.a. i.e., External Bench Mark - 10 year G-sec (presently 6.21%) plus KBL spread of 2% plus 0.75%; with a maximum cap of 9.25% p.a.|
|Documentation||As applicable for Working Capital Term Loans|
For further details on the GECL product, please contact your branch.