Cent Emergency Credit Line Guarantee Scheme 5.0

Scheme Name

Details

Cent Emergency Credit Line Guarantee Scheme 5.0

(CENT ECLGS 5.0)

Purpose: To provide additional credit facilities to eligible borrowers to tide over any short-term liquidity mismatches in view of West Asia crisis.

The credit guarantee coverage of 100% for MSMEs and 90% for non-MSMEs as well as the airline sector to Member Lending Institutions (MLIs) for the default amount by NCGTC

Nature of Facility: Working capital Term loan

Quantum of Finance:

For MSMEs/Non MSMEs:

Additional credit up to 20% of peak fund-based working capital outstanding during fourth quarter of FY 2025-26 (i.e. between 01.01.2026 and 31.03.2026 both days inclusive) up to maximum of Rs. 100 Crore.

For Airline Sector:

Up to 100% of the total peak credit outstanding (fund-based and non-fund based) during the fourth quarter of FY 2025–26. (i.e between 01.01.2026 and 31.03.2026 both days inclusive) with maximum of Rs. 1500 crore per borrower. (Of this, any amount beyond ₹1,000 crore and up to ₹1,500 crore shall be permitted only with a proportionate equity contribution from the promoters/owners)

Interest Rate:

For MSMEs: RBLR + 0.75% (Subject to maximum cap of 9.00%)

For Non MSMEs (except Airline sector): MCLR + 0.75% (Subject to max. cap of 9.00%)

Moratorium: -

For MSMEs/Non MSMEs - 1 year

For airline sector - 2 years

(Interest during the moratorium period to be serviced as and when due)

Guarantee:

100% on Amount in Default for MSMEs
90% on Amount in Default for non-MSMEs as well as Airline sector.

Each Account should be mandatorily covered under NCGTC Guarantee

Security:

The Bank shall ensure to create charge on existing securities (primary as well as collateral) and on assets created out the loan under CENT ECLGS 5.0, within 90 days from the date of first disbursement. The Charge on the existing securities (primary as well as collateral) shall be second Pari-passu in nature. However, for airline sector additional security shall be obtained as mentioned in Annexure I.

Recital of equitable mortgage is to be ensured in all cases, wherever applicable.

Each Account should be mandatorily covered under NCGTC Guarantee. No Guarantee fee should be levied on the borrower.

No Personal Guarantee or third-Party guarantee shall be obtained.

Others-

Eligible borrowers to apply the loan through Jan Samarth Portal and application will be processed through DLP.