15-06-2021 | 15:59 PM
Emergency Credit Line Guarantee Scheme (ECLGS) 4.0
• Government has increased the scope of the Emergency Credit Line Guarantee Scheme (ECLGS) for three more months, overviewing the disruptions caused by the second wave of COVID 19 pandemic.
• Modifications in ECLGS will enhance the utility and impact of ECLGS by providing additional support to MSMEs.
• It will safeguard livelihoods and help in the resumption of business activity. It will facilitate the flow of institutional credit at reasonable terms
Key Highlights
• 100% guarantee cover to be provided on loans, in hospitals/nursing clinics/medical colleges/homes, up to Rs.2 crore. The loan can be utilized to set up on-site oxygen generation plants. The interest rate on load was capped at 7.5%.
• Ceiling of Rs. 500 Cr. of loan outstanding for eligibility under ECLGS 3.0 will be removed.
• Additional ECLGS assistance of up to 10% of outstanding by February 2020 to borrowers who are covered under ECLGS 1.0.
• Civil Aviation sector will be eligible under ECLGS 3.0
• Validity of ECLGS extended to 30.09.2021.
About Emergency Credit Line Guarantee Scheme (ECLGS)
• ECLGS was launched under the Atmanirbhar Bharat Abhiyan package in May 2020.
• It was launched to overcome the distress caused by the economy due to lockdown. It helped different sectors by providing credit to them.
• The credit is provided to them for four years besides one year moratorium period on principled repayment.
