The government has extended the ₹4.5 lakh crore Emergency Credit Line Guarantee Scheme (ECLGS) till March 31, 2022, to help businesses cope with the pandemic’s adverse effects.
The ECLGS was due to expire on September 30 and has helped 1.15 crore micro, small and medium enterprises (MSMEs) so far. As on September 24, loans sanctioned under the ECLGS have crossed ₹2.86 lakh crore, with about 95% of the guarantees issued for loans sanctioned to MSMEs.
“Government has been receiving demands from various industry bodies and other stakeholders to extend the scheme to ensure continued support to eligible sectors/businesses,” the Finance Ministry said.
“With a view to support various businesses impacted by the second waveof COVID-19 pandemic, it has been decided to extend the timeline of ECLGS till 31.03.2022 or till guarantees for an amount of ₹4.5 lakh crore are issued under the scheme, whichever is earlier,” it added.
A few modifications have been made to the scheme’s coverage norms and the National Credit Guarantee Trustee Company Limited will issue revised operational guidelines to implement these changes.
“The modification introduced would ensure that businesses adversely impacted by the second wave of COVID 2019 get enhanced collateral free liquidity. Further, this provides much needed support to all the ECLGS borrowers [which mainly consist of MSME units] in time for the busy/festival season,” the Ministry said.
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