To support various businesses affected by the second wave of COVID-19, the government has decided to extend the Emergency Credit lINE Guarantee Scheme (ECLGS) to March 31, 2022, or to guarantee Rs 4.5 lakh crore. Offered under this scheme, whichever is earlier.
- The last date for issuance under this scheme has been extended to June 30, 2022
*Since its inception, ECLGS has provided relief to over 15 crores micro, small and medium enterprises (MSMEs) and businesses to meet their operational responsibilities and to restart their businesses affected by covid-19.
*As of 24 September 2021, the loans sanctioned under ECLGS were Rs. 2.86 lakh crore and 95 percent of the loans were disbursed to MSMEs.
Modifications in ECLGS:
*Under ECLGS 1.0 1.0 & 2.0 any additional assistance up to 10% is enabled until February 29, 2020 or March 31, 2021.
*Businesses that do not receive assistance under ECLGS (ECLGS 1.0 / 2.0) are allowed to receive up to 30 percent of the loan support outstanding until March 31, 2021.
*Under ECLGS 3.0, the maximum loan amount is 40 percent of the outstanding loan of Rs. 200 crores.
*Existing ECLGS borrowers may receive increased credit within this range.
*Borrowers with assistance under ECLGS and those with outstanding loans up to March 31, 2021, will receive increased support within the limits set out under ECLGS 1.0, 2.0, or 3.0 if they exceed February 29, 2020.