Finance Ministry extends Emergency Credit Line Guarantee Scheme till March 2022
Sep 29, 2021
New Delhi [India], September 29 : With a view to supporting the various businesses impacted by the second wave of the COVID-19 pandemic, the Government of India has decided to extend the timeline of the Emergency Credit Line Guarantee Scheme (ECLGS) till March 31, 2022, or till guarantees for an amount of Rs 4.5 lakh crore are issued under the scheme, whichever is earlier, said a press release.
Further, the last date of disbursement under the scheme has also been extended to June 30, 2022, added the Ministry of Finance's statement.
Earlier the validity of ECLGS was till September 30, 2021, or till guarantees for an amount of Rs. 3 lakh crore is issued while the disbursement under the scheme was permitted up to December 31, 2021, as per the release.
According to the press release, the modifications 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.
Emergency Credit Line Guarantee Scheme (ECLGS) since its launch, has extended relief to over 1.15 crore Micro, Small and Medium Enterprises (MSMEs) and businesses. It has provided support to eligible borrowers in meeting their operational liabilities and restarting their businesses in the wake of disruptions caused by the COVID-19 pandemic.
As of 24th September 2021, loans sanctioned have crossed Rs. 2.86 lakh crore under the Scheme and out of total guarantees issued, about 95% of the guarantees issued are for loans sanctioned to Micro, Small and Medium Enterprises.
