New Delhi: To extend support to Covid-hit Micro, Small and Medium Enterprises (MSMEs) sector, the government on Wednesday extended 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. The last date of disbursement under the scheme has also been extended to June 30, 2022, a Finance Ministry statement said.
The move follows various demands raised by different entities seeking the extension of the support of this scheme. “The 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 ministry said.
Following are the modifications for MSMEs:
- Existing borrowers under ECLGS 1.0 and 2.0 would be eligible for additional credit support of up to 10 per cent of total credit outstanding as of February 29, 2020, or March 31, 2021, whichever is higher.
- Businesses that have not yet availed any sort of assistance under ECLGS 1.0 or 2.0, will be eligible to avail credit support to the tune of up to 30 per cent for their credit outstanding as of March 31, 2021.
- Businesses in sectors specified under ECLGS 3.0, who have previously not availed ECLGS, can avail credit support up to 40 per cent of their credit outstanding as of March 31, 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.
- 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.
ECLGS was launched in May 2020 as a part of the government’s Rs 20 lakh crore relief package to help MSMEs amid Covid-19. Since then, it has extended support to over 1.15 crore MSMEs. “As of September 24, 2021, loans sanctioned have crossed Rs 2.86 lakh crore under the scheme,” the ministry said.
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