The scheme aims to provide credit guarantee coverage of 100% for MSMEs and 90% for non-MSMEs, as well as the airline sector, to Member Lending Institutions (MLIs) by National Credit Guarantee Trustee Company Limited (NCGTC) for the amount in default under the additional credit facility extended to the eligible borrowers to tide over any short-term liquidity mismatches in view of the West Asia Crisis.
- Eligible borrowers are MSMEs and non-MSMEs with existing working capital limits and scheduled passenger airlines having outstanding credit facilities, as of March 31, 2026, provided their accounts are standard.
- No Guarantee fee.
- Tenor of Loan:
- For MSMEs/Non-MSMEs (except the Airline sector): 5 years from the date of first disbursement, including a moratorium of 1 year.
- For the airline sector: 7 years from the date of first disbursement, including a moratorium of 2 years.
- Tenure of Guarantee Cover: The maximum period of guarantee cover shall be co-terminus with the tenor of the loan.
- Duration of the Scheme: The Scheme would apply to all loans sanctioned during the period from the date of issue of these guidelines by NCGTC up to 31.03.2027.
Source: The Hindu