EMERGENCY CREDIT LINE GUARANTEE SCHEME
The FM of India introduced ‘Emergency Credit Line Guarantee Scheme’ to enable additional funding of upto Rs. 3 lakh crore to the eligible MSMEs and MIDRA borrowers. The funds under this scheme will be fully guaranteed by National Credit Guarantee Trustee Company Limited (NCGTC). The emergency credit line guarantee scheme has been announced to give an incentive to lenders to offer additional funding facility to MSME borrowers by providing them 100% guarantee for any losses suffered by the lenders due any default. It expected to provide support to small businesses struggling meet their operational liabilities due to the nationwide lockdown. Interest rates under the scheme have been capped at 14% for NBFCs and 9.25% for banks. Loans under this scheme shall be provided for a period of four years with the first year as principal moratorium.
Following its key philosophy of helping MSMEs to relaunch them on their growth trajectory, Fintree, in line with the scheme, is offering the additional loan to its existing eligible borrowers to revive their business, thus, creating some room and contribute to the economic stability in these tough times. These borrowers shall be offered additional funding at an ROI of 14% and easy repayment plan of four years to repay their debt. The end use of money disbursed will be to reinvest and revive business as well as pay lenders wherever necessary to settle overdues and avoidance of any additional charges, if any, to the borrower”