New Delhi: On account of the disruptions brought on by the second wave of COVID 19 pandemic to companies throughout varied sectors of the economic system, Government has additional enlarged the scope of Emergency Credit Line Guarantee Scheme.
The following amendments and inclusions have been made under the Emergency Credit Line Guarantee Scheme:
(i) ECLGS 4.0:100% assure cowl to loans up to Rs.2 crore to hospitals/nursing houses/clinics/medical schools for establishing on-site oxygen technology vegetation, rate of interest capped at 7.5%;
(ii) Borrowers who’re eligible for restructuring as per RBI pointers of May 05, 2021 and had availed loans under ECLGS 1.0 of total tenure of 4 years comprising of compensation of curiosity solely through the first 12 months with compensation of principal and curiosity in 36 months thereafter will now be ready to avail a tenure of 5 years for their ECLGS mortgage i.e. compensation of curiosity solely for the primary 24 months with compensation of principal and curiosity in 36 months thereafter;
(iii) Additional ECLGS help of upto 10% of the excellent as on February 29, 2020 to debtors lined under ECLGS 1.0, in tandem with restructuring as per RBI pointers of May 05, 2021;
(iv) Current ceiling of Rs. 500 Cr. of mortgage excellent for eligibility under ECLGS 3.0 to be eliminated, topic to most extra ECLGS help to every borrower being restricted to 40% or Rs.200 crore, whichever is decrease;
(v) Civil Aviation sector to be eligible under ECLGS 3.0
(vi) Validity of ECLGS prolonged to 30.09.2021 or until ensures for an quantity of Rs.3 lakh crore are issued. Disbursement under the scheme permitted up to31.12.2021.
The modifications in ECLGS, would improve the utility and influence of ECLGS by offering extra assist to MSMEs, safeguarding livelihoods and serving to in seamless resumption of enterprise exercise. These adjustments will additional facilitate circulation of institutional credit at affordable phrases.
Detailed operational pointers on this regard are being individually issued by the National Credit Guarantee Trustee Company (NCGTC).
