Government extends emergency lines of credit guarantee program for three more months
The Union government has today extended the scope of the Emergency Credit Line Guarantee Program (ECLGS) by introducing ECLGS 3.0 to cover companies in the hospitality, travel and tourism, leisure and sport which had, as on February 29 of last year, the total outstanding credit not exceeding Rs. 500 crore and the delays, if any, were 60 days or less, at this date, i.e. February 29, 2020.
ECLGS 3.0 would imply a credit extension of up to 40% of the total outstanding credit in all credit institutions as of February 29, 2020. The duration of loans granted under ECGLS 3.0 will be 6 years, including a 2-year moratorium period.
In addition, the validity of ECLGS, i.e. ECLGS 1.0, ECLGS 2.0 and ECLGS 3.0, has been extended until June 30 or until guarantees in the amount of Rs. 3 lakh crore are issued. The plan disbursement deadline has been extended to September 30.
The changes introduced in the program, while providing an incentive for MLIs to allow the availability of an additional funding mechanism for eligible beneficiaries, will greatly contribute to economic recovery, job protection and the creation of an enabling environment. job creation.
Revised operational guidelines in this regard will be issued by National Credit Guarantee Trustee Company Ltd (NCGTC).
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