Page 48 - Banking Finance February 2021

ARTICLE

Y Claims shall be filed by MIs (Member institutions) with guarantee cover will commence from the date of payment
the proposed Fund, after 90 days from the date of of guarantee fee and shall run through the agreed tenure
account turning NPA but before 120 days. While, 75% of the Stand Up India credit facilities.
of claim amount shall be settled within a period of 120
days from the date of the lodging of claim and Funds outside NCGTC (Technology platform
completion of required documents, the balance 25% of Sharing)
the claim amount shall be paid after 24 months from Here Technology platform is being shared for guarantee
the date of 1st settlement or exhausting all legal products of development finance institutions and other Quasi
remedies based on a certificate from the factor, Government Funds.
whichever is earlier.

4) Credit Guarantee Fund for Micro Units Funds inside NCGTC
(CGFMU) SIDBI is implementing the Poorest States Inclusive Growth
Guarantees for loans up to the specified limit (currently Rs. Programme (PSIG Programme), funded by UK Aid from the
10 Lakh) sanctioned by Banks / NBFCs / MFIs / other financial Department for International Development (DFID), U.K. The
intermediaries engaged in providing credit facilities to Programme, with duration of 6 years from April 2012, aims
eligible micro units. Further, Overdraft loan amount of Rs. to improve access for poor, mainly women, to a variety of
5,000/- sanctioned under PMJDY accounts shall also be financial services in the 4 low income states viz., Bihar,
eligible to be covered under Credit guarantee Fund. Orissa, Madhya Pradesh and Uttar Pradesh. NCGTC
manages two collaterized funds under the Programme.It
5) Credit Guarantee Scheme for Standup India works on Fee based for using NCGTC Technology platform.
(CGSSI) Guarantee funds outside India (Technology
Guarantees for credit facilities of over Rs. 10 lakh & up to platform Sharing)
Rs. 100 lakh sanctioned by the eligible lending institutions
without any collateral security and/or third party It works on Technology platform Sharing basis for the
guarantees, under the Stand up India Scheme (SC/ST/ Guarantee funds outside India.
Women for setting up Greenfield enterprises).
Emergency credit line guarantee scheme
Extent of the guarantee- The Fund shall provide guarantee (ECLGS)
cover to the extent of 80% of the amount in default for
credit facility above Rs.10 lakh and up to Rs.50 lakh, subject It is launched by Government of India as a special scheme
to a maximum of Rs.40 lakh.For credit facility above Rs.50 in view of COVID-19 crisis. It is to provide 100% guarantee
lakh and up to Rs.100 lakh - Rs.40 lakh plus 50% of amount coverage to banks and NBFCs to enable them to extent
in default above Rs.50 lakh subject to overall ceiling of Rs.65 emergency credit facilities to business enterprises/MSMEs
lakh of the amount in default. in view of COVID-19 to meet their additional term loan/
working capital requirements.
The Fund reserves the right to modify the same. The
Emergency credit line-the amount of Emergency credit line
to be extended to business enterprises/MSMEs would be up
to 20 % of total outstanding as on Feb, 29, 2020.

There will be 100% guarantee coverage for the additional
funds sanctioned under the emergency credit line scheme.

Eligible Borrower-Business enterprises/MSMEs with
outstanding loan of up to Rs 25 crore as on 29 feb 2020 and
turnover of up to Rs 100 crore in FY 2019-20. In case accounts
for FY 2019-20 are yet to be audited/finalized, the MLI may
rely upon the borrower's declaration of turnover. The Scheme
is valid for existing customers on the books of the MLI.

48 | 2021 | FEBRUARY | BANKING FINANCE