An ECLGS loan offers eligible borrowers up to 20% of their peak fund-based working capital outstanding, with interest rates ranging from 7.50% to 13.00% per annum and zero processing fees. Check your pre-approved offer, complete the required documentation, and apply through the online or branch-assisted process.
In summary
- An ECLGS loan is a government-backed credit facility available to eligible existing business borrowers through member lending institutions.
- Under ECLGS 5.0, eligible borrowers can avail funding of up to 20% of their peak fund-based working capital outstanding during the fourth quarter of FY 2025-26, subject to a borrower-level cap of Rs. 100 crore.
- Interest rates range from 7.50% to 13.00% per annum, while processing fees, foreclosure charges, part-payment charges, bounce charges, and annual maintenance charges are nil.
- The loan carries a total tenor of 60 months, including a 12-month principal standstill period followed by 48 months of Dropline EMI repayment.
- Existing borrowers with a satisfactory repayment track record can benefit from a streamlined application and disbursal process.
- Bajaj Finance offers eligible customers access to pre-approved ECLGS facilities through a simplified application journey. This page covers eligibility criteria, required documents, application steps, fees, repayment structure, approval timelines, and common reasons for rejection.
What is an ECLGS loan?
An ECLGS loan is an additional term loan extended to existing business borrowers under the Emergency Credit Line Guarantee Scheme. The government, through NCGTC, provides guarantee coverage that helps lenders extend additional credit support without requiring fresh collateral.
Under ECLGS 5.0, eligible borrowers can avail a loan amount of up to 20% of their peak fund-based working capital outstanding during the fourth quarter of FY 2025-26 (1 January 2026 to 31 March 2026), subject to a maximum borrower-level cap of Rs. 100 crore. The funds can be used for working capital and business-related expenses, excluding payments to promoters, promoter-related entities, or associated group concerns.
Who can apply for an ECLGS loan?
You may be eligible to apply for an ECLGS loan if you meet the following conditions:
- You are an existing business loan customer with fund-based working capital limits as on 31 March 2026.
- You are classified as either an MSME or a non-MSME borrower under applicable guidelines.
- Your existing credit facility was availed for business purposes.
- Eligible facilities may include Business Loans, Professional Loans, Doctor Loans, Loan Against Property, and similar business-oriented credit products.
- Your account is classified as standard and is not categorised as SMA-2 as on 31 March 2026.
- Your account is not classified as a Non-Performing Asset (NPA) with any lender at the time of sanction or disbursal.
- You have maintained a satisfactory repayment record, with no 60+ DPD in the last 12 months and no 30+ DPD in the last 6 months.
- You are applying either as an individual borrower or through an eligible business entity such as a proprietorship, partnership, private limited company, or public limited company.
- MSME applicants possess a valid Udyam Registration certificate.
Key eligibility snapshot
| Particulars | Requirement |
|---|---|
| Borrower type | Existing MSME and eligible non-MSME borrowers |
| Account status | Standard account |
| NPA status | Not NPA with any lender |
| Udyam Registration | Mandatory for MSMEs |
| Repayment history | No 60+ DPD in last 12 months and no 30+ DPD in last 6 months |
| Maximum loan amount | Up to 20% of eligible working capital exposure |
| Borrower-level cap | Rs. 100 crore |
What documents are required for an ECLGS loan?
The documentation process is simplified because the facility is generally offered to existing customers.
Keep the following documents ready:
- Valid Udyam Registration certificate for MSME borrowers.
- Updated KYC documents if your address or personal details have changed since your existing loan was sanctioned.
- Board Resolution for companies where applicable.
- Partnership Authority Letter for partnership firms.
- Loan agreement documents.
- NACH mandate, if the existing repayment mandate is unavailable.
- Business end-use self-declaration confirming that the funds will be used for eligible business purposes.
Fresh collateral documents, legal opinions, technical valuations, and property reassessments are generally not required under the ECLGS structure.
How to apply for an ECLGS loan online?
Eligible customers can complete most of the ECLGS loan application journey digitally. Here is a detailed step-by-step process:
Step 1: Log in to your customer account
Visit the Bajaj Finance customer portal or mobile app and log in using your registered mobile number. Ensure that the mobile number linked to your existing loan account is active because OTP-based authentication is required throughout the process.
Step 2: Check your pre-approved ECLGS offer
After logging in, navigate to your loan offers section. If you meet the eligibility criteria, a pre-approved ECLGS offer may be visible. The offer generally displays the sanctioned amount, applicable interest rate, repayment structure, and loan tenor.
Since the offer is pre-created based on eligibility and repayment history, there is no need to submit a separate loan application form.
Step 3: Verify borrower information
Carefully review your personal details, business information, loan structure, co-applicant information, and repayment account details. Any mismatch between existing records and current information can delay processing.
As part of the verification process, your credit profile and existing loan status may also be refreshed and reviewed.
Step 4: Complete the confirmation call
A representative may contact you to discuss the offer details. During this interaction, you can review the approved amount, repayment schedule, principal standstill structure, applicable interest rate, and other loan terms.
Prompt responses help keep the application moving without unnecessary delays.
Step 5: Accept the loan documents
Review the Key Fact Statement, consent letter, and loan agreement carefully. Eligible borrowers can complete the acceptance process using OTP-based e-signing on their registered mobile number.
This digital documentation process significantly reduces turnaround time compared to traditional loan applications.
Step 6: Submit required declarations
Upload or submit the required business end-use declaration and any additional supporting documents requested during verification.
MSME borrowers should ensure that their Udyam Registration certificate remains valid and available for verification.
Step 7: Operations verification
The operations team verifies customer details, eligibility conditions, loan structure, documentation, Udyam Registration validity, and end-use declarations.
Since the offer is pre-approved, the review primarily focuses on documentation accuracy and compliance checks.
Step 8: Loan booking and disbursal
Once verification is completed successfully, the loan is booked under your customer profile and assigned a new loan account number. The sanctioned amount is then credited to your repayment-linked bank account.
How to apply for an ECLGS loan at a branch?
Borrowers whose loan structures require physical documentation can complete the process at a branch.
Step 1: Visit the branch
Visit the nearest Bajaj Finance branch and carry your identification details, business information, and Udyam Registration certificate where applicable.
Step 2: Verify existing loan information
The branch team will access your pre-approved ECLGS offer and review your existing loan details, business structure, repayment track record, and applicant information.
Step 3: Complete physical documentation
Physical documentation is generally required for:
- Secured loan structures
- Partnership firms
- Private limited companies
- Public limited companies
- Cases involving multiple authorised signatories
Authorised partners, directors, or proprietors must provide wet signatures on the required documents.
Step 4: Submit supporting documents
Provide Board Resolutions, Partnership Authority Letters, and business end-use declarations as required.
Certain documents can also be shared through approved email channels for verification.
Step 5: Verification and approval
The branch coordinates with the operations team to complete document verification and compliance checks.
Step 6: Disbursal
After successful verification, the loan is booked and the sanctioned amount is credited to the linked bank account.
ECLGS loan interest rates, tenor and repayment structure
ECLGS loans follow a standardised repayment structure.
| Particulars | Details |
|---|---|
| Interest rate | 7.50% to 13.00% per annum |
| Maximum interest cap | 13.00% per annum |
| Total tenor | 60 months |
| Principal standstill period | 12 months |
| EMI repayment period | 48 months |
| Repayment structure | Dropline EMI |
| Prepayment charges | Nil |
| Foreclosure charges | Nil |
During the first 12 months, borrowers pay only the applicable interest. Principal repayment begins from the 13th month and continues through Dropline EMIs over the remaining 48 months.
Fees and charges on an ECLGS loan
The scheme follows a borrower-friendly fee structure.
- Processing fees: Nil
- Flexi facility charges: Nil
- Annual maintenance charges: Nil
- Part-payment charges: Nil
- Foreclosure charges: Nil
- Bounce charges: Nil
- Penal interest: Nil
- Statement charges: Nil
- Certificate charges: Nil
- Stamp duty: Applicable as per state regulations
Stamp duty remains the only mandatory charge payable by the borrower.
What happens after you apply?
Once your application and documentation are completed, the following stages take place:
- Operations verification of customer details and loan structure.
- Validation of agreements, declarations, and supporting documents.
- Verification of Udyam Registration for MSME applicants.
- Loan booking under the existing customer profile.
- Creation of a new loan account number.
- Disbursal of the sanctioned amount into the linked repayment account.
The process is generally faster than a fresh business loan because the offer is already pre-approved for eligible customers.
Why do some ECLGS applications get rejected?
Even pre-approved offers can be declined if eligibility conditions are no longer met.
Common reasons include:
- Loan account classified as SMA-2 or NPA.
- NPA status with any lender before sanction or disbursal.
- Poor repayment history.
- Missing or invalid Udyam Registration certificate.
- Borrower operating in an excluded sector.
- Intended use of funds not aligned with scheme guidelines.
- Mismatch between existing records and current applicant details.
- Changes in repayment banking or loan structure that require additional verification.
Maintaining a standard account status and keeping documentation updated can help avoid processing issues.
Understanding the ECLGS application process
The ECLGS application process is designed to provide eligible businesses with access to additional working capital through a pre-approved credit facility. With simplified documentation, zero processing fees, interest rates capped at 13.00% per annum, and a 60-month repayment structure, the scheme offers structured funding support for eligible borrowers.
Businesses looking for additional financing solutions can also explore business loans, compare the applicable business loan interest rate, and estimate repayments using a business loan EMI calculator.
