EXTENSION OF EMERGENCY CREDIT LINE GURANTEE SCHEME (ECLGS)
EXTENSION OF EMERGENCY CREDIT LINE GURANTEE SCHEME (ECLGS)
EXTENSION
OF EMERGENCY CREDIT LINE GURANTEE SCHEME (ECLGS)
The
Union Government on 2nd November extended the EMERGENCY CREDIT LINE
GURANTEE SCHEME till 30th November, 2020 or till such time that an
amount of Rupees 3 lakh crores is
sanctioned under the scheme, whichever is earlier.
Keeping
in view the opening up of various sectors in economy and expected increase
in demand during the ongoing festive
season the scheme is extended. Extension of scheme will provide further
opportunity to those borrowers who have not availed of the scheme so far.
ECLGS
was announced as part of Aatma Nirbhar Bharat Scheme to
provide fully guaranteed and collateral free additional credit to MSMEs, business
enterprises, individual loans for business purposes to the extent of 20% of
their credit outstandings as on
29.02.2020. Borrowers with credit outstanding of Rupees 50 crores and
turnover of Rupees 250 crores are eligible under the scheme. Interest rates
under the scheme are capped at 9.02 % for Banks , FIs while 14% for NBFCs.
Tenure of loans is 4 years ,including a moratorium of 1 year on principal
repayment
As on date an amount of Rupees 2.03 lakh crores has been sanctioned under this scheme to 60.67 lakhs borrowers so far, while an amount of Rupees.1.48 lakh crores had been disbursed.