ECLGS: The government extended the Emergency Credit Line Guarantee Scheme (ECLGS) by three months to 30 June 2021.
Emergency credit line guarantee scheme extended till June
The government extended the duration of the Emergency Credit Line Guarantee Scheme (ECLGS) by three months to 30 June 2021. Along with expanding its scope, the hotel, travel and tourism sector has also been included in it. The Finance Ministry said in a statement that up to 40 per cent of the total outstanding loans will be given to various financial institutions under ECLGS 3.0 as on February 29, 2020. The term of the loan given under ECLGS 3 will be six years. This will include a delay of 2 years.
The ministry said in a statement, some service sectors remain adversely affected by the COVID-19 Pandemic. In view of this, the government has expanded the scope of ECLGS and introduced ECLGS 3.
These sectors have been included
It includes hotels, travel and tourism, laser and sporting sectors. This facility is for those enterprises whose total loan is not more than Rs 500 crores till February 29, 2020 and any loan outstanding on them is 60 days or less on February 29, 2020.
Apart from this, the tenure of ECLGS-ECLGS 1.0, ECLGS 2.0 and ECLGS 3.0 has been extended till June 30, 2021 or till the issuance of a guarantee of Rs 3 lakh crore. Under the scheme, the last date of loan repayment has been extended till 30 September 2021.
The plan was valid until October 2020 and was later extended to the end of November. The scheme was later extended in November to 31 March 2021 under the self-reliant India 3.0 package. It included 26 pressure zones identified by the Kamat Committee of RBI.
What is ECLGS
The government announced a special loan of Rs 3 lakh crore for MSME (Micro, Small and Medium Enterprises) to deal with the impact of the Corona crisis. Under this 3 lakh crore rupees MSME eligible borrowers will get offers from their credit companies.
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