The Finance Ministry on Wednesday expanded the scope of the Rs 5 lakh-crore Emergency Credit Line Guarantee Scheme (ECLGS) to assist MSMEs engaged in journey, tourism and hospitality sectors to beat the impression of the COVID-19 pandemic impression.
The protection, scope and extent of advantages underneath ECLGS 3.0 pertaining to hospitality, journey, tourism and civil aviation sectors have been expanded, the ministry mentioned in a press release.
Finance Minister Nirmala Sitharaman whereas saying the Budget 2022-23 had prolonged the validity of the scheme by one other one 12 months till March 2023, and likewise elevated the entire quantity to be sanctioned underneath the scheme from Rs 4.5 lakh crore to Rs 5 lakh crore.
As per the most recent modification, new debtors, within the sectors coated underneath ECLGS 3.0, who’ve borrowed between March 31, 2021, and January 31, 2022, will now be eligible to avail the emergency credit score services.
Also, the credit score restrict for eligible debtors has been elevated to 50 per cent of their fund-based credit score excellent from 40 per cent earlier.
“Eligible debtors in all such sectors (aside from the civil aviation sector) at the moment are permitted to avail as much as 50 per cent of their highest fund-based credit score excellent on any of three reference dates (Feburary 29, 2020, March 31, 2021 and January 31, 2022), as towards the sooner restrict of 40 per cent of the upper of their fund-based excellent on both of two reference dates (February 29, 2020 and March 31, 2021),” the ministry mentioned.
The enhanced restrict is topic to a most of Rs 200 crore per borrower, it added.
Individuals and proprietary issues within the sectors coated underneath ECLGS 3.0 may now avail of emergency credit score services.
The recent modifications are aimed toward enabling companies in these contact-intensive sectors to get additional assist by way of enhanced protection and collateral-free liquidity on capped rates of interest/charges, it mentioned.
Keeping in view the excessive proportion of non-fund primarily based credit score within the general credit score of the civil aviation sector, the ministry mentioned, eligible debtors within the civil aviation sector at the moment are permitted to avail of non-fund primarily based emergency credit score services as properly underneath ECLGS 3.0.
As towards the sooner restrict of availing as much as 40 per cent of their fund-based excellent, debtors can now avail as much as 50 per cent of their highest complete fund and non-fund primarily based credit score excellent.
Further, to decrease their value of accessing non-fund-based credit score, financial institution ensures, letters of credit score and different non-fund primarily based services sanctioned underneath ECLGS 3.0 might be issued with none money margin and topic to a cap of 0.5 per cent every year on the price/fee, it mentioned.
Since its launch in May 2020, loans price Rs 3.19 lakh crore has been sanction till March 25, 2022. About 95 per cent of the ensures issued are for loans sanctioned to micro, small and medium enterprises.
(Only the headline and film of this report might have been reworked by the Business Standard workers; the remainder of the content material is auto-generated from a syndicated feed.)
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