How GECL Loan is Important for Every Small Business in India? 

GECL will offer eligible borrowers working capital term loans up to 50% of their total credit outstanding (fund based) provided they meet all the other eligibility criteria and their outstanding credit is within a cap of Rs.200 crore.

The GECL scheme will be implemented to all loans sanctioned under GECL from the date of issuance of the NCGTC guidelines until 30.06.2021 or as soon as guaranteed amounts equivalent to Rs 3,00,000 crore are issued (considering ECLGS 1.0, 2.0, and 3.0), whichever is earlier. National Credit Guarantee Trustee Company provides a 100% guarantee for GECLs extended via additional term loans for working capital to Member Lending Institutions (MLIs).    

COVID-19 has created a situation that has never been seen before. This scheme is a specific response. The main goal is to provide relief to the MSME sector by encouraging MLIs to provide additional credit up to Rs 3 lakh crore at a low cost, thereby assisting MSMEs in meeting their operations liabilities and restarting their businesses. As a response to COVID-19, the scheme is unique. 

COVID-19 is a unique situation that calls for a specific response. Encouraging MLIs to provide credit up to Rs 3 lakh crore at a low cost will relieve the MSME sector that has been badly suffering. As a result, MSMEs will meet operational liabilities and restart their businesses.


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