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.

Powered by Capital Market – Live News

(This story was not edited by Business Standard staff and is auto-generated from a syndicated feed.)

Dear reader,

Business Standard has always strived to provide up-to-date information and commentary on developments that matter to you and have broader political and economic implications for the country and the world. Your encouragement and constant feedback on how to improve our offering has only strengthened our resolve and commitment to these ideals. Even in these difficult times resulting from Covid-19, we remain committed to keeping you informed and updated with credible news, authoritative views and cutting-edge commentary on relevant current issues.
However, we have a demand.

As we fight the economic impact of the pandemic, we need your support even more so that we can continue to provide you with more quality content. Our subscription model has received an encouraging response from many of you who have subscribed to our online content. More subscriptions to our online content can only help us achieve the goals of providing you with even better and more relevant content. We believe in free, fair and credible journalism. Your support through more subscriptions can help us practice the journalism to which we are committed.

Support quality journalism and subscribe to Business Standard.

Digital editor

Comments are closed.