Even if a borrower has existing outstanding credit facilities with a lender, they can avail of the GECL loan for further capital. The borrower can avail of this loan via one lender or more than one lender, provided there is a discussion between the lending institutions and the borrower.
If a borrower has already taken an amount of 20% from one lender, then as per the scheme, to avail another 20% from another lender, a NOC certificate must be shared from all lending institutions. The No Objection Certificate is not required if the lender only avails 20% of the existing credit amount from one lender as per the scheme.
The loan available under the GECL scheme has its own EMIs, moratorium, interest rate, and term. The GECL, however, shares the security interest with the original loan. It is ranked as the second charge with the original facility regarding security interest and cash flow.
In case you do not qualify for a GECL loan, you can apply for an unsecured business loan from leading lenders and get up to Rs. 45 lakh by submitting just a few documents. Under the GECL loan, you do not need to pay guarantee, and you will not have to provide any further security to the lending institutions.
In case you do not meet the eligibility criteria to get a GECL loan, you can also consider high-value unsecured business loans and get funds with quick approval and minimal paperwork. Top financial institutions offer hassle-free business loans with simple eligibility and affordable rates. You can get instant funds as per your business requirements.