The scheme ECLMB (Emergency Credit Line for MSME and Business Enterprises) provides additional credit to MSMEs and Business Enterprises.
The Scheme is a specific response to the unprecedented situation COVID-19. It seeks to provide much needed relief to the MSME sector, thereby enabling MSMEs/Business Enterprises to meet their operational liabilities and restart their businesses. Hereinafter MSME to include Business Enterprises
The eligibility criteria under the Scheme are as under:
• All MSME borrower accounts with combined outstanding loans across all Lending institutions of up to Rs. 25 Crore as on 29.2.2020, and annual turnover of up to Rs. 100 Crore in FY 2019-20.
• The Scheme is valid only for existing customers on the books of the IDFC FIRST Bank. • Borrower accounts should be classified as regular, SMA-0 or SMA-1 as on 29.2.2020. Accounts classified as NPA or SMA-2 as on 29.2.2020 will not be eligible under the Scheme.
• The MSME borrower must be GST registered in all cases where such registration is mandatory. This condition will not apply to MSMEs that are not required to obtain GST registration.
• Loans which are covered includes LAP and BIL products. However, loans provided in individual capacity (except individual MUDRA loans) will not be covered under the Scheme.
Yes, loans under PMMY extended on or before 29.2.2020, and reported on the MUDRA portal shall be covered under the Scheme.
A separate loan account shall be opened for the borrower for extending additional credit under Scheme Name. This account will be distinct from the existing loan account(s) of the borrower.
This is a pre-approved facility. An offer will go out from the Bank to the eligible borrowers for a pre-approved facility which the borrower may choose to accept. Thus, an ‘opt-out’ option will be provided to eligible borrowers under the Scheme, i.e., if the borrower is not interested in availing the loan, he/she may indicate accordingly. If the MSME/Business Enterprises accepts the offer and fulfils the eligibility norms of the bank to avail sanction, it will be required to complete requisite documentation to avail the sanction.
•In case a borrower has existing limits with multiple lenders, facility may be availed either through one lender or each of the current lenders in proportion depending upon the agreement between the borrower and the lending institution.
• In case the borrower wishes to take from any lender an amount more than the proportional 20% of the outstanding credit that the borrower has with that particular lender, a No Objection Certificate (NOC) would be required from all other lenders.
• No NOC will, however, be required if the facility availed from a particular lender is limited to the proportional 20% of the outstanding credit that the borrower has with that lender.
Yes, interest rates on GECL shall be capped under one of the RBI prescribed external benchmark linked rates +1% subject to a maximum of 9.25% per annum.
The tenor of loans provided under this Scheme shall be four years from the date of disbursement. No pre-payment penalty shall, however, be charged by IDFC FIRST Bank in case of early repayment.
Yes, a moratorium period of one year on the principal amount shall be provided under this scheme. Interest shall, however, be payable during the moratorium period. The principal shall be repaid in 36 instalments after the moratorium period is over.
Since additional credit under Scheme is to be provided to existing customers, no additional processing fee shall be charged by lenders.
No additional collateral shall be asked for additional credit extended under this scheme.
No. Existing loans extended through current Government schemes would continue to be categorized under that scheme as earlier. GECL under this Scheme shall be over and above the existing loan.
The credit under this facility will rank second charge with the existing credit facilities in terms of cash flows (including repayments) and securities, with charge on the assets financed under the Scheme to be created within a period of 3 months from the date of disbursal.
You are eligible if:
(i) you have total credit outstanding of Rs. 25 Crore or less as on 29th Feb 2020
(ii) your turnover for 2019-20 was upto Rs. 100 Cr.
(iii) You have a GST registration or were not required to obtain such GST registration
Udyog Aadhar or recognition as MSME is not required under this Scheme
Under this scheme, Bank is to offer loans upto 20%. Actual loan extended can therefore be less than 20%. This is generally on mutually agreed terms between the borrower and the lender based on factors relevant to the business operations.
See answer to question 16
This scheme is only for existing borrowers on the books of IDFC FIRST Bank as on 29th Feb 2020. Any New borrowers should be covered under ongoing CGTMSE and NCGTC schemes
For loans having co-applicant, only those existing loans where entity is the primary co-applicant are covered under the Scheme for additional emergency funding.
No, the scheme does not cover the off-balance sheet exposure. Only on balance sheet exposures outstanding as on 29th Feb, 2020 are eligible to be covered under the scheme.
Accounts that are NPA or where overdues have crossed 60 days (SMA-II) are not eligible under this scheme.
Please address your queries/suggestions to our nearest IDFC FIRST Bank Branch or call at 1860 500 9900 or mail at ECL@idfcfirstbank.com.
KRM Tower, 7th Floor, No. 1,
Harrington Road, Chetpet,
Chennai - 600031, Tamil Nadu,
Bandra East, Mumbai - 400051,
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