Emergency Credit Scheme For 6.3 Crore MSMEs Extended Till This Date (Full Details)
The scheme for COVID affected MSMEs and Emergency Credit Line Guarantee Scheme (ECLGS) has now been extended for the fifth time.
This scheme, introduced by the Modi Government will now be extended by six more months till March 31, 2022. Or, there will be guarantees for the overall ceiling of Rs. 4.5 lakh crore, whichever of the two is earlier.
Emergency Credit Line Guarantee Scheme Extended For Fifth Time
This scheme was launched in May last year and has been extended multiple times. First it was extended from October last year to November, then to March 2021, which was again extended till June and then lastly, it was extended till September.
This extension was given in order to include more sectors and markets.
It was recently reported that the loans that have been sanctioned had surpassed Rs 2.86 lakh crore under the ECLGS scheme. Whereas, 95% of the total guarantees issued were for loans sanctioned to MSMEs, as per the statement issued by the ministry.
The ECLGS has extended relief to more than 1.15 crore MSMEs and businesses till now.
During the lockdown days, PM Modi-led BJP Govt had announced the ambitious Atma Nirbhar Bharat Abhiyaan, or Self-Reliant India Mission, which encouraged more manufacturing, more services, more innovations right in India, by Indians, for Indians.
Modifications To The Emergency Credit Line Guarantee Scheme
Recently, some modifications have also been announced to the scheme. As per reports, the existing borrowers under ECLGS 1.0 and 2.0 would be eligible for additional credit support of up to 10 per cent of total credit outstanding as of February 29, 2020, or March 31, 2021, whichever is higher. Additionally, businesses who have not availed assistance under ECLGS can avail credit support of up to 30 per cent of their credit outstanding as of March 31, 2021.
Additionally, businesses in sectors specified under ECLGS 3.0, who have previously not availed ECLGS, can avail credit support up to 40 per cent of their credit outstanding as of March 31 to the maximum of Rs 200 crore per borrower.
Govt of India’s Emergency Credit Line Guarantee Scheme (ECLGS) had been rolled out, under Atma Nirbhar Bharat Abhiyaan. The Government has allocated a loan facility of Rs 3 lakh crore to the entrepreneurs, MSMEs and startups under this program.
Emergency Credit Line Guarantee Scheme (ECLGS) was announced by Finance Minister Nirmala Sitharaman last month, and the sanctioned amount of Rs 3 lakh crore was planned to be dispersed by October end.