SME Times is powered by   
Search News
Just in:   • Equity indices break two-day losing streak on value buying  • IMF urges Sri Lanka to tighten monetary policy  • Global semiconductor sales to reach $676 bn this year: Gartner  • Tinna Rubber hits upper circuit, investors accumulate 900% returns in year  • Availability of jobs in Japan improves for 1st time in 3 yrs 
Last updated: 31 May, 2021  

Rupee.9.Thmb.jpg ECLGS 4.0: More benefits to MSMEs

ECLGS.jpg
   Top Stories
» Net direct tax collection reaches highest-ever figure in FY 22
» Musk has to manufacture here to sell Tesla cars in India: Gadkari
» Round tripping of industrial inputs by large players unfavourable to local value chains
» Sitharaman engages investors in Silicon Valley
» Modi hails India's success in achieving target of $400 billion of exports
Bikky Khosla | 31 May, 2021

In a welcome move, the Central government last week modified the Emergency Credit Line Guarantee Scheme (ECLGS) to extend its scope further. The Finance Ministry, while making the announcement, viewed that these changes will provide additional support to MSMEs and help various sectors hit severely by the second wave of the Covid-19 pandemic. ECLGS has already proved beneficial for our MSMEs, and now ECLGS 4.0 holds more promise for the sector.

First of all, the current ceiling of Rs 500 crore of loan outstanding for eligibility under ECLGS 3.0 is removed, subject to maximum additional ECLGS assistance to each borrower being limited to 40 percent or Rs 200 crore, whichever is lower. This move is encouraging as it would bring in more small businesses under ambit of the scheme. Moreover, additional ECLGS assistance of up to 10 percent of the outstanding credit as of February 29, 2020, is now offered to borrowers covered under ECLGS 1.

The statement adds that borrowers who are eligible for restructuring and had availed loans under ECLGS 1.0 of overall tenure of four years comprising of repayment of interest only during the first 12 months with repayment of principal and interest in 36 months thereafter will now be able to avail a tenure of five years for their ECLGS loan. Also, validity of the scheme is now extended to September 30, 2021 or till guarantees for an amount of Rs.3 lakh crore are issued.

Besides the aforesaid MSME-friendly measures, the scheme is now extended to bring the civil aviation sector under its ambit. This is no doubt good news for the sector which has been hit hard by the pandemic. In addition, hospitals, nursing homes, clinics and medical colleges will now get 100 guarantee cover to loans up to Rs 2 crore for setting up on-site oxygen generation plants. At a time when there is a severe shortage of medical oxygen, this is welcome decision again.

I invite your opinions.
 
Print the Page
Add to Favorite
 
Share this on :
 

Please comment on this story:
 
Subject :
Message:
(Maximum 1500 characters)  Characters left 1500
Your name:
 

 
  Customs Exchange Rates
Currency Import Export
US Dollar
66.20
64.50
UK Pound
87.50
84.65
Euro
78.25
75.65
Japanese Yen 58.85 56.85
As on 27 Apr, 2022
  Daily Poll
COVID-19 has directly affected your business
 Yes
 No
 Can't say
  Commented Stories
 
 
About Us  |   Advertise with Us  
  Useful Links  |   Terms and Conditions  |   Disclaimer  |   Contact Us  
Follow Us : Facebook Twitter