New Delhi, Nov 27 (KNN) The government has issued guidelines for implementation of Emergency Credit Line Guarantee Scheme (ECLGS) 2.0 scheme where it has extended the scheme to 26 sectors including the health sector identified by the Kamath Committee.
According to an official statement on Thursday the scheme shall come into force from the date of issue of these guidelines by the National Credit Guarantee Trustee Company Limited (NCGTC).
The scheme was announced by the government earlier this month as part of the Rs 2.65 lakh crore Atmanirbhar Bharat 3.0 package.
Under ECLGS 2.0 entities with outstanding credit above Rs 50 crore and not exceeding Rs 500 crore as on February 29, 2020, which were less than or equal to 30 days past due as on February 29, 2020 are eligible,” the statement said.
The loans provided under ECLGS 2.0 will have a five-year tenor, with a 12-month moratorium on repayment of principal, it added.
“These entities or borrower accounts will be eligible for additional funding up to 20 per cent (which could be fund based or non-fund based or both) of their total outstanding credit (fund based only) as a collateral free Guaranteed Emergency Credit Line (GECL), which would be fully guaranteed by NCGTC,” the statement read further.
It has also been decided to extend ECLGS 1.0 to entities under ECLGS which had a total credit outstanding (fund-based only) of up to Rs 50 crore as on February 29, 2020, but were previously ineligible owing to their annual turnover exceeding Rs 250 crore.
The scheme would be applicable to all loans sanctioned under ECLGS during the period from the date of issue of these guidelines by NCGTC to March 31, 2021 or till guarantees for an amount of Rs 3 lakh crore is sanctioned under the ECLGS (taking into account both ECLGS 1.0 and 2.0), whichever is earlier.
The modified scheme, while providing an incentive to Member Lending Institutions (MLIs) to enable availability of additional funding facility to the eligible borrowers, both MSMEs/business enterprises and identified sectors that supports MSMEs, will go a long way in contributing to economic revival, protecting jobs, and create conducive environment for employment generation, it said.
As on November 12, banks and financial institutions had sanctioned Rs 2.05 lakh crore to 61 lakh MSMEs. However, disbursements stood at Rs 1.52 lakh crore.
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