EMERGENCY CREDIT LINE GUARANTEE SCHEME
What : ECLGS was launched under Atmanirbhar Bharat Abhiyan package in May 2020. It was launched to overcome the distress caused on economy due to lockdown. It helped different sectors by providing credit to them. Credit is provided to them for four years besides one year moratorium period on principled repayment.
What is the news : Government has increased the scope of Emergency Credit Line Guarantee Scheme (ECLGS) for three more months overviewing the disruptions caused by second wave of COVID 19 pandemic. Extension will help businesses across several sectors of economy.
Other details :
- 100% guarantee cover to be provided on loans, in hospitals/nursing clinics/medical colleges/homes, up to Rs.2 crore. Loan can be utilized up to set up on-site oxygen generation plants. Interest rate on load was capped at 7.5%.
- Additional ECLGS assistance of up to 10% of outstanding by February 2020 to borrowers who are covered under ECLGS 1.0.
- Ceiling of Rs. 500 Cr. of loan outstanding for eligibility under ECLGS 3.0 will be removed. It is subject to maximum additional ECLGS assistance provided to each borrower which is limited to 40% or Rs.200 crore, whichever is lower.
- Civil Aviation sector will be eligible under ECLGS 3.0
- Validity of ECLGS extended to 30.09.2021