Extension of the guarantee program for emergency credit lines, the civil aviation sector will be eligible


Due to the disruption caused by the second wave of the COVID 19 pandemic to businesses in various sectors of the economy, the government has further expanded the scope of the Emergency Line of Credit Guarantee (ECLGS) program. Under ECLGS 4.0, 100% guarantee coverage is offered for loans up to 2 crore rupees to hospitals / nursing homes / clinics / medical schools for setting up factories oxygen production on site, the interest rate is capped at 7.5%. Borrowers eligible for restructuring in accordance with RBI guidelines of May 5, 2021 and who had received ECGLS 1.0 loans with an aggregate term of four years including repayment of interest only during the first 12 months with repayment of principal and interest in the following 36 months can now benefit from a period of five years for their ECLGS loan, that is to say repayment of interest only during the first 24 months with repayment of principal and interest in the following 36 months;

Additional ECLGS assistance of up to 10% of outstanding as of February 29, 2020 to borrowers covered by ECLGS 1.0, in tandem with restructuring in accordance with RBI guidelines of May 5, 2021. Current cap of Rs . 500 Cr. of the current loan for ECLGS 3.0 eligibility should be removed, provided that the maximum additional ECLGS assistance to each borrower is limited to 40% or Rs. 200 crore, depending on the amount. the lowest. The civil aviation sector will be eligible for ECGLS 3.0. ECLGS validity extended until 30.09.2021 or until guarantees in the amount of Rs. 3 lakh crore are issued. Disbursements under the scheme are authorized until 12.31.2021.

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