CENT Guaranteed Emergency Credit Line (CGECL)

1. At present the entire world is reeling under COVID-19 crisis which is declared as Global
Pandemic by World Health Organization. Due to outbreak of COVID-19, though human
beings are the most sufferers but the economy of entire world has also been impacted
adversely and there is drastic decline in cash flow. Our constituents whom we have
financed Working Capital/ Term Loan etc. to run their business are not also isolated and
they are facing liquidity crunch.
2. Bank has introduced an Emergency Credit Line Guarantee Scheme (ECLGS) for providing
100% guarantee coverage for additional working capital term loans sanctioned to Business
Enterprises /MSMEs, up to 20% of their entire outstanding credit up to Rs.25 crore i.e.
upto Rs.5 crore, as on February 29, 2020, subject to the account being less than or equal to
60 days past due as on that date.
3. The details of the proposed product are as under:

1 Name of the CENT GUARANTEED EMERGECY CREDIT LINE

product
2 Purpose Additional working capital requirements due to liquidity mismatch arising
out of COVID 19. The amount can be utilised for any working capital
purposes such as purchase of inputs, payment of wages, salary, other
operational expenses and statutory dues etc
3 Nature of Additional Working Capital Term Loan
facility
4 Quantum of Up to 20% of the Combined Fund Based outstanding as on 29/02/2020 with
finance all the Lending Institutions – Maximum amount Rs 5 Crore
5 Eligible 1) Business Enterprises / MSME institution borrowers with combined
Borrowers outstanding with all the Member Lending Institutions up to Rs. 25
crore as on 29.2.2020, and annual turnover of up to Rs. 100 crore in
FY 2019-20. In case accounts for FY 2019-20 are yet to be
audited/finalized, Bank shall rely upon the borrower’s declaration of
turnover. Credit bureau/ CRILC checks shall be done to assess total
outstanding across all MLIs

2) Business Enterprises / MSMEs constituted as Proprietorship,

Partnership, registered company, trusts and Limited Liability
Partnerships (LLPs) shall be eligible under the Scheme.

3) Loans provided in individual capacity are not covered under the

Scheme. However, loan availed in individual capacity under PMMY
on or before 29.02.2020 are eligible.
4) For loans having co-applicant, only those existing loans where entity
is the primary co-applicant are covered under the Scheme for
additional emergency funding.
5) The Scheme is valid for existing customers of the Bank as on
29/02/2020.
6) Borrower accounts should be less than 60 days past due as on 29th
February, 2020 with all the Lending Institutions. All borrowers
which have not been classified as SMA 2 or NPA by any of the MLIs
as on 29th February, 2020
 7) For the purpose of this Scheme, Business Enterprises / MSMEs
would also include loans covered under Pradhan Mantri Mudra
Yojana (PMMY).
8) Business Enterprises / MSME borrower must be GST registered in all
cases where such registration is mandatory. This condition will not
apply to Business Enterprises / MSMEs that are not required to
obtain GST registration
9) It is not necessary that the existing loans of the borrowers should be
covered under the existing NCGTC or CGTMSE Scheme.
10) Advances given under Cent Trade / Cent Mortgage / Cent Business
Loan and any other loan product provided for business purpose etc
are covered, subject to fulfilling other eligibility criteria of the
scheme and the funds being disbursed are utilised for additional
working capital requirement.
6 Period of Loan 4 years from the date of first disbursement
(door to door
tenure)
7 Moratorium 12 months from the date of first disbursement- Interest during the
period moratorium period need to be paid as and when due
8 Repayment Repayable in 36 EMI commencing one year after first disbursement
period and
installment
9 Rate of interest RBLR linked Rate of interest applicable for working capital loans of the
respective category (Micro/ Small / Medium) plus the tenor premium
applicable for 4 years with a cap of 7.50%
10 Duration / The scheme is valid till 31.10.2020 or till an amount of Rs 3,00,000 crore is
Validity of the sanctioned under the GECL by all the Member Lending Institutions (MLI)
scheme opted for the scheme, whichever is earlier.
11 Security “Primary security” in respect of a credit facility shall mean the assets
created out of the credit facility so extended
The additional WCTL facility granted under GECL shall rank pari passu
with the existing credit facilities in terms of cash flows and security, with
charge on the assets financed under the Scheme to be created. Recoveries
effected should be appropriated in all term loans, including in the additional
WCTL on pari passu basis.
No additional collateral shall be asked for additional funding under this
scheme.
All the existing securities including the assets financed under the scheme
shall be extended to the proposed scheme as well.
Wherever possible the charge on the security has to be created before
disbursement of the loan. In case of any difficulty in creation of security
before disbursement ( in accounts under MBA/ Consortium/ etc)the charges
shall be created within a period of three months from the date of first
disbursal.
12 Guarantors No guarantors
13 Disbursement The amount will be disbursed as per business requirement.
14 Internal/External No Minimum level of Internal Credit Rating is stipulated.
Credit Rating However, in case of exposures of Rs 5 crore and above the external credit
rating should be “BBB” or above OR there has not been downgrade in
external credit rating since last sanction.
 In case the existing exposure is below Rs 5 crore and consequent upon
sanction of the additional WCTL under this scheme, total exposure sums up
to Rs 5 crore & above, the borrower would have to obtain external rating
which should be equivalent to “BBB”, or better.
15 Processing No Processing Charges
Charges
16 Penal Interest No penal interest due to any non-compliance of the already accepted
covenants on the existing credit facilities may be charged on additional loans
during the sanction time. However, penal interest may be charged for non-
compliance of the accepted covenants of the additional working capital term
loan extended under the scheme
17 Pre-payment No pre-payment charges
charges
18 Borrowers under In case a borrower has existing limits with multiple lenders, GECL may be
MBA/ availed either through one lender or multiple lenders depending upon the
Consortium agreement between the borrower and the Bank.
In case the borrower wishes to take from any lender an amount more than the
proportional 20% of the outstanding credit that the borrower has with that
particular lender, a No Objection Certificate (NOC) would be required from
all other lenders.
No NOC will, however, be required if the GECL availed from a particular
lender is limited to the proportional 20% of the outstanding credit that the
borrower has with that lender

4. For further details customers may contact our branches.