Emergency credit guarantee scheme extended
The Ministry of Finance extended the emergency credit line guarantee scheme (ECLGS) to sectors severely affected by the COVID-19 pandemic. It has broadened the scope of this scheme to encompass more businesses to avail government guaranteed loans.
The ECLGS 2.0 scheme will offer funding to 26 stressed sectors identified by the Reserve Bank of India (RBI) appointed KV Kamath committee. Meanwhile, the healthcare sector with outstanding credit above ₹50 crore and not exceeding ₹500 crore as on 29 February 29, 2020.
Eligible borrowers will get additional funding of up to 20% of their total outstanding credit as a collateral free credit fully guaranteed by National Credit Guarantee Trustee Company Ltd. The loan will have a duration of 5 years & a 12-month moratorium on repayment of principal.
The statement said scheme “will go a long way in contributing to economic revival, protecting jobs, and create conducive environment for employment generation.”
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