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In summary
A GECL loan provides additional business credit backed by a government guarantee to the lender. ECLGS 5.0 supports eligible existing borrowers facing short-term working capital pressures, subject to scheme conditions and lender assessment.
- Guarantee cover: The ECLGS scheme provides lenders with 100% guarantee coverage for MSMEs and 90% for eligible non-MSMEs and airlines.
- Loan amount: Eligible MSMEs and non-MSMEs can receive up to 20% of peak fund-based working capital outstanding during January–March 2026, capped at Rs. 100 crore.
- Eligibility: ECLGS eligibility generally requires existing borrowing as at 31 March 2026 and standard accounts excluding SMA-2, alongside applicable sector conditions.
- Security: No fresh collateral is required for MSMEs and non-MSMEs outside aviation, but charges apply to existing securities and financed assets.
- Charges: ECLGS 5.0 facilities carry no processing fee or prepayment penalty; interest caps depend on lender type.
Check scheme eligibility with your existing lender, or assess Bajaj Finance business loan eligibility for other funding needs.
What is the Emergency Credit Line Guarantee Scheme (ECLGS)?
The Emergency Credit Line Guarantee Scheme (ECLGS) provides government-backed lender guarantees through the National Credit Guarantee Trustee Company Limited (NCGTC) for a GECL loan, or Guaranteed Emergency Credit Line, extended to eligible businesses.
The ECLGS scheme originally enabled additional credit of up to Rs. 3 lakh crore to help businesses manage COVID-19-related liquidity pressures. Participating lenders assess borrowers and extend credit, while NCGTC guarantees the eligible portion of lender losses if borrowers default. The guarantee protects the lender; borrowers remain responsible for repayment. A regular Bajaj Finance business loan has separate eligibility requirements and terms.
Introduced in 2026, ECLGS 5.0 provides additional working capital support to eligible existing borrowers affected by West Asia-related disruptions, extending liquidity support beyond the original pandemic response.
What is the purpose of the ECLGS scheme?
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The ECLGS scheme provides working capital and liquidity support to eligible MSMEs and other businesses, helping them meet operational liabilities and maintain business continuity. The GECL facility enables eligible borrowers to access additional credit backed by a government guarantee to participating lenders.
Originally introduced to address COVID-19-related disruption, the scheme helped businesses pay suppliers, cover operating expenses and restart activity. ECLGS 5.0 addresses short-term liquidity mismatches linked to West Asia-related disruptions, supporting eligible existing MSME and non-MSME borrowers, with separate provisions for scheduled passenger airlines. Funding remains subject to scheme conditions and lender assessment.
What types of loans are offered under the ECLGS scheme?
A GECL loan generally provides additional term-loan funding under the ECLGS scheme, with the facility type depending on the lender, scheme version and eligible borrower category. Some versions also permit non-fund-based support.
| Loan type | Key feature | Best for |
|---|---|---|
| Working capital term loan | Additional credit through participating banks and financial institutions | Meeting operational expenses |
| Additional term loan | Credit extended through participating NBFCs | Addressing eligible business liquidity needs |
| Non-fund-based facility | Guarantees or letters of credit where the scheme permits | Eligible trade and payment commitments |
Bajaj Finance’s regular Term and Flexi variants are separate product options and should not automatically be described as GECL facilities. Check scheme eligibility with your participating lender, or assess Bajaj Finance business loan options for other requirements.
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How much GECL loan can you get under ECLGS?
The GECL loan amount depends on the ECLGS version: initial limits were 20% under ECLGS 1.0/2.0 and 40% under ECLGS 3.0, while ECLGS 5.0 uses qualifying working capital outstanding.
The table distinguishes original version terms from the current framework; subsequent extensions changed some earlier limits and tenures.
| ECLGS scheme version | Loan amount | Tenure | Eligible sectors |
|---|---|---|---|
| 1.0, original launch | Up to 20% of outstanding credit on 29 February 2020; original outstanding-credit eligibility ceiling of Rs. 25 crore | 48 months | Eligible MSMEs and businesses |
| 2.0, original terms | Up to 20% of qualifying outstanding credit; borrowers with outstanding above Rs. 50 crore and up to Rs. 500 crore | 5 years | 26 identified stressed sectors and healthcare |
| 3.0, original terms | Up to 40% of qualifying outstanding credit, capped at Rs. 200 crore | 6 years | Hospitality, travel, tourism, leisure, sporting and civil aviation |
| 5.0 | Up to 20% of peak fund-based working capital outstanding during January–March 2026, capped at Rs. 100 crore; separate airline limits | 5 years; 7 years for airlines | Eligible MSMEs, non-MSMEs and scheduled passenger airlines |
Earlier reference dates determine historical eligibility, rather than current application windows. ECLGS 1.0-4.0 concluded on 31 March 2023; assess fresh funding under the applicable ECLGS 5.0 conditions.
Who meets ECLGS eligibility requirements?
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GECL loan eligibility under ECLGS 5.0 covers eligible existing MSMEs and non-MSMEs, including proprietorships, partnerships, LLPs and registered companies, subject to account status, sector conditions and lender assessment.
The current framework uses 31 March 2026 as its borrower reference date. Earlier outstanding-credit and turnover thresholds should not be applied automatically to ECLGS 5.0.
Parameter Requirement Business type Eligible MSMEs, non-MSME businesses and scheduled passenger airlines Existing borrowing Borrower must be on a participating lender’s books as at 31 March 2026 Account status Standard, excluding SMA-2, across lenders on the reference date MSME identification Valid Udyam Registration or Udyam Assist Certificate Sector coverage All MSME sectors; specified exclusions apply to non-MSMEs Funding assessment Qualifying working capital exposure and assessed business requirement Meeting these conditions does not guarantee sanction; the lender verifies records and assesses the application. For the ECLGS scheme for MSME borrowers, check with your existing lender; assess Bajaj Finance business loan eligibility separately for other funding needs.
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What are the interest rates and charges under the ECLGS scheme?
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The GECL loan interest rate under ECLGS 5.0 is capped at 9% p.a. for banks and financial institutions and 13% p.a. for NBFCs, excluding airlines; processing and prepayment charges are nil.
Parameter Details Applicable ECLGS scheme version Bank/FI interest MSMEs: EBLR + 0.75%; non-MSMEs: MCLR + 0.75%, capped at 9% p.a. 5.0, excluding airlines NBFC interest Maximum 13% p.a. 5.0, excluding airlines Airline interest Lender’s board-approved pricing policy 5.0 Processing fee Nil 5.0 Part-prepayment/foreclosure penalty Nil 5.0 NCGTC guarantee fee Nil 5.0 Loan tenor
ECLGS 5.0 provides five-year repayment for eligible MSMEs and non-MSMEs, including a one-year principal moratorium; airlines receive seven years, including a two-year moratorium.
Nature of account
GECL credit is maintained as a separate facility, allowing its repayment and guarantee coverage to be tracked independently.
Security and guarantee fees
No fresh collateral is required for non-airline borrowers, but existing security charges may extend to GECL; NCGTC charges no guarantee fee.
How to apply for a GECL loan
Apply for a GECL loan under ECLGS 5.0 through the JanSamarth portal, selecting your participating lender for assessment.
- Start your application: Enter the required borrower and business details on JanSamarth.
- Select your lender: Choose the participating lender for your existing borrowing.
- Confirm eligibility: The lender checks ECLGS scheme conditions, account status and qualifying credit exposure.
- Submit documents: Provide the financial, business and identification records requested.
- Complete sanction: Following approval, the lender arranges guarantee coverage and disbursal.
For separate funding needs, check your pre-approved offer with Bajaj Finance using your mobile number and OTP.
Is the ECLGS scheme still available in 2026?
Yes, the ECLGS scheme is available in 2026 through ECLGS 5.0, with sanctions permitted until 31 March 2027 or until guarantees reach Rs. 2.55 lakh crore, whichever is earlier. Eligible existing borrowers can access a GECL loan for additional working capital, backed by NCGTC guarantees. ECLGS 5.0 addresses liquidity pressures linked to West Asia-related disruptions. Earlier ECLGS 1.0–4.0 sanction windows concluded on 31 March 2023, rather than September 2021.
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Frequently Asked Questions
Overview
How does the ECLGS scheme benefit MSME businesses?
The ECLGS scheme benefits eligible MSME businesses by providing additional working capital with government-backed lender guarantees and no processing or prepayment charges. Under ECLGS 5.0, a GECL loan generally requires no fresh collateral, although existing security charges may extend to it. Repayment spans five years, including a one-year principal moratorium. Interest is capped at 9% p.a. through banks and financial institutions, or 13% through NBFCs.
Can ECLGS be used for business expansion rather than emergency cash flow?
No, the ECLGS scheme’s current 5.0 framework is designed for working capital and short-term liquidity support, rather than capital expenditure or business expansion. Eligible funding helps businesses meet operational costs and address cash flow mismatches, subject to lender assessment and scheme conditions. If you plan to open another outlet or purchase expansion equipment, consider a standard business loan from Bajaj Finance instead of a GECL loan.
How does the GECL loan scheme work for MSMEs?
A GECL loan provides eligible MSMEs with additional credit from participating lenders, backed by 100% government-supported guarantee coverage through NCGTC under ECLGS 5.0. The ECLGS scheme for MSME borrowers involves three steps: apply through JanSamarth and select your lender; complete eligibility assessment and documentation; receive sanctioned funding after the lender arranges guarantee coverage. The guarantee protects the lender, while the MSME remains responsible for repayment.
What are the key features of the GECL loan under ECLGS?
A GECL loan under the ECLGS scheme provides additional working capital to eligible existing borrowers, with guarantee coverage and repayment terms determined by borrower category. For MSMEs, ECLGS 5.0 features include guarantee coverage: 100% through NCGTC; processing fee: nil; prepayment and foreclosure penalty: nil; tenure: five years, including a one-year principal moratorium. No fresh collateral is generally required, but existing security charges may apply.
What is GECL and how is it related to ECLGS?
GECL, or Guaranteed Emergency Credit Line, is the credit facility extended to eligible borrowers under the Emergency Credit Line Guarantee Scheme. ECLGS is the government-backed scheme through which NCGTC provides guarantee coverage to participating lenders. Put simply, GECL is the financing a borrower receives, while ECLGS provides the lender’s guarantee protection; the borrower remains responsible for repayment.
Can a restaurant that started after 2020 apply for ECLGS?
Yes, a restaurant that started after 2020 may meet ECLGS eligibility under version 5.0 if it had qualifying borrowing with a participating lender as at 31 March 2026 and satisfies other conditions. The current ECLGS scheme assesses account status, working capital exposure and sector eligibility. An MSME restaurant must also provide recognised MSME identification. Its opening date alone does not determine eligibility, and earlier versions used different reference dates.
Are ECLGS loans collateral-free?
ECLGS 5.0 generally requires no fresh collateral from eligible MSMEs and non-MSMEs outside aviation, but existing security charges may apply. A GECL loan carries NCGTC guarantee coverage of 100% for MSMEs and 90% for eligible non-MSMEs. This does not automatically make the facility unsecured. For separate funding needs, check Bajaj Finance business loan eligibility.
Is the ECLGS still available for new applicants?
ECLGS 5.0 accepts fresh applications from eligible existing borrowers, rather than businesses seeking their first credit facility. A GECL loan requires qualifying borrowing as at 31 March 2026, with NCGTC providing lender guarantee coverage. Earlier ECLGS 1.0–4.0 sanction windows ended on 31 March 2023. Apply through JanSamarth; for separate Bajaj Finance business loan offers, enter your mobile number and OTP on its official portal.
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Bajaj Finance Limited has the sole and absolute discretion, without assigning any reason to accept or reject any application. Terms and conditions apply*.