The Novel CoronaVirus (COVID-19) outbreak has impacted the business entities and economy of our country in an adverse manner. The Government of India vide its Atmanirbhar Abhiyan is taking a lot of measures to support business / MSME units during COVID crisis. One of such initiatives is the introduction of Emergency Credit Line Guarantee scheme: ECLGS (with a credit product named Guaranteed Emergency Credit Line: GECL ) for providing 100% guarantee coverage for additional working capital term loan up to 20% of their entire outstanding credit up to Rs 25.00 crore i.e. up to Rs 5.00 crore, as of 29.02.2020, subject to the account being less than or equal to 60 days past due as on that date.
In line with Government initiatives, Union Bank of India has launched the Union Guaranteed Emergency Credit Line (UGECL) to enable Mudra beneficiaries/ MSME / business units to tide over their liquidity crisis subject to eligibility. This scheme endeavours to serve the lower strata of the society thereby reducing their difficulties. We are glad to announce that on the first day itself i.e. 1st June 2020, more than 14000 accounts have been sanctioned. Though the Bank’s focus is mainly on Tier-II / Tier-III cities for UGECL, Branches pan India are actively participating in approaching the eligible customers and prompt sanction of limits.
Union Bank of India will handhold all eligible MSME / business units in this demanding time and provide the necessary support.