SME Times News Bureau | 29 Sep, 2021
With a view to support various businesses
impacted by the second wave of COVID 19 pandemic, it has been has decided to extend the timeline of Emergency Credit Line
Guarantee Scheme (ECLGS) till 31.03.2022 or till guarantees for
an amount of Rs 4.5 lakh crore are issued under the scheme, whichever is
earlier, said an official release on Wednesday.
Further, the last date of disbursement under the
scheme has also been extended to 30.06. 2022.
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 on 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.
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 following modifications have been
made in the scheme to enable support to businesses impacted by the second wave
of COVID
- Existing
borrowers under ECLGS 1.0 & 2.0 would be eligible for additional
credit support of upto 10% of total credit outstanding as on 29.02.2020 or
31.03.2021, whichever is higher.
- Businesses
who have not availed assistance under ECLGS (ECLGS 1.0 or 2.0), can
avail credit support of upto 30% of their credit
outstanding as on 31.03.2021.
- Businesses
in sectors specified under ECLGS 3.0, who have previously not availed ECLGS, can
avail credit support up to 40% of their credit outstanding as on
31.03.2021, to the maximum of Rs.200 crore per borrower;
- Incremental
credit can
be availed within these limits by existing ECLGS borrowers whose
eligibility increased because of change in cut off date to 31.03.2021 from
29.02.2020.
- Accordingly,
Borrowers who have availed assistance under ECLGS and whose credit
outstanding as on 31.03.2021 (excluding support under ECLGS) is higher
than that on 29.02.2020 shall be eligible for incremental support
within the cap stipulated under ECLGS 1.0,2.0 or 3.0.
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
revised operational guidelines in this regard are being issued separately by National Credit Guarantee Trustee Company Limited (NCGTC).
