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Frequently asked questions
Yes, The additional loan would be covered under NCGTC’s ECLGS, while the original loan
would continue under CGFMU as previously covered.
The scheme is for business activities. Any activity that is classified as an MSME or a
business enterprise as per various guidelines issued by RBI or any Ministry from time to
time are eligible for coverage under the scheme. If the other norms of the scheme are
complied with, these institutions shall stand eligible.
No restriction has been imposed for such types of units as they would also have been
impacted by the pandemic and may suffer time and cost overrun. The concerned MLI
should ensure overall eligibility under the scheme.
It means a vehicle registered for commercial purposes.
Yes, they are eligible.
No. Extension of any guarantee or obtention of any fresh guarantee will make the guarantee
cover provided by NCGTC under the scheme void.
The second charge assumes the nature of first charge after payment of full dues of first charge holder. However, if the assets against which second charge was created itself are not there, then the facility extended under ECLGS would become unsecured. New assets would not be required for creating or sustaining the charge.
ECLGS is admissible for all business activities. There is no negative list for coverage under
ECLGS.
Yes, business loans availed by individuals for their own businesses shall be eligible under the
scheme. However, the MLI shall have to submit a suitable Management Certificate at the time
of lodgement of guarantee application.
Yes, you are eligible, provided you meet the other eligibility criteria of the scheme.
Yes, you are eligible, provided you meet the other eligibility criteria of the scheme.
Yes, you are eligible, provided you meet the other eligibility criteria of the scheme.
You are eligible, provided the loan has been taken for your own business purpose and you
meet the other eligibility criteria of the scheme.
No.
No, there are some validations in the system and hence modifications cannot be allowed.
However, on specific request from registered (at the time of enrolment) mail id of the MLI,
NCGTC would arrange to delete the guarantees issued and the MLI shall be able to apply
afresh for the guarantee in respect of loan to such borrowers.
NCGTC has already developed and circulated a module as per which the MLI ‘B’ can rectify
the Bureau outstanding. It may, however, be noted that MLI ‘B’ should retain the document
relating to Bureau outstanding as proof which would be required in case of claim settlement.
Yes, all scheduled RRBs are eligible. It may be mentioned here that subsequent to
amalgamation of certain RRBs which were previously scheduled, they are yet to be included
in Second Schedule of RBI Act, but considering that RBI has already commenced the process
to include them in the Schedule which may take some time and the fact that they were earlier
scheduled, they are also eligible under ECLGS.
No, NOC would be required from the respective lenders whose share of ECLGS loan, the
borrower wants to avail from one particular lender. It may, however, be necessary here for the
particular lender to agree to provide assistance under ECLGS on behalf of these other
lenders.
A page would be created on the portal for takeover cases wherein MLI ‘B’ would have to enter
certain details about the borrower being taken over from MLI ‘A’– it would include fields like
borrower name, names of MLIs ‘A’ & ‘B’, CGPAN number of MLI ‘A’, loan account number,
Management Certificate of having taken over the loan, etc. On submission of the same,
NCGTC would verify the details of transfer and on approval, fresh CGPAN number shall be
generated for MLI ‘B’ and a mail shall go to the registered mail ids of the two MLIs about shift
of guarantee from MLI ‘A’ to MLI ‘B’.
There would be no change in the repayment schedule, which should be as per scheme
guidelines and both MLIs should ensure the same.
A claim lodgement page shall be available on the portal, which is under development
presently. The MLI shall furnish the details of the account which would include date of NPA,
amount in default, status of legal action etc. The MLI may also be required to upload
Management Certificate certifying certain details about the account. On submission of this
claim, an e-mail shall go to the MLI that their claim has been lodged and NCGTC would initiate
action to approve the claim request and arrange to pay 75% of the amount in default within
30 days of the claim date provided all requisite documents are submitted and the claim is
found to be in order and complete in all respects. This shall be treated as Interim Claim.
The MLI shall also furnish details of the recoveries made in the account and after adjusting
such recoveries towards default amount relating to first charge and the legal costs incurred
by them, remit the balance amount to NCGTC within 30 days, failing which MLI shall be
required to pay the recovered amount along with interest at 2% over and above the prevailing
repo rate from the date of recovery to the date of payment.
On completion of the recovery Proceedings or till decree gets time barred, whichever is earlier, the MLI shall submit its claim for the balance 25% of the amount in default (net of recoveries, if not already remitted as above). Procedure for settlement of this Final Claim shall be the same as that of Interim Claim except that in the case of loans to individuals, Management Certificate shall be replaced by Statutory Auditor’s certificate.
MLI here refers to all lending institutions
Yes
No, second charge has to be created only on the securities available with the lender providing
the ECLGS facility.
The facility cannot be provided in respect of closed accounts. Hence, Entity ‘B’ would be
entitled to 20% of outstanding of entity ‘B’ alone, subject to meeting of other eligibility criteria
prescribed under the scheme.
However, if the constitution of entity ‘A’ gets changed to entity ‘B’ (and PAN gets changed)
subsequent to February 29, 2020, then entity ‘B’ shall be eligible for assistance as entity ‘A’
would have become eligible, had it continued to be in existence.
The Operational Guidelines of the scheme provide for second charge only on securities
available with an MLI. Nowhere any mention of obtention of any guarantee was stipulated.
The said FAQ was not an amendment to the guidelines, but just a clarification. MLIs who have
obtained guarantee in any form may take necessary steps to get the same cancelled to ensure
continuity of guarantee cover.
Yes, disbursement can be availed after October 31, 2020, but latest by December 31, 2020.
No. The annual turnover prescribed under the scheme is Rs.250 crore (inclusive of all taxes
along with GST) for FY 2019-20.
No.
Yes, eligibility of the borrower is to be seen, not of other entities/personal account.
The lender can release his charge, but continue to hold the securities on behalf of NCGTC till
clearance of entire dues under the scheme.
Please address your queries/suggestions to ceo@ncgtc.in