ECLG scheme: Rs 3-lakh crore collateral-free ECLG scheme extended till March 31, 2021: Nirmala Sitharaman

The Government on Thursday expanded the Emergency Credit Liquidity Guarantee Scheme till March 31, 2021, a move that will be gainful for a large number of MSMEs in the nation.

The plan was at first expected to end on October 30, 2020, however was consequently stretched out by a month and should slip by on November 30.

In a question and answer session, Finance Minister Nirmala Sitharaman said an aggregate sum of Rs 2.05 lakh crore has been endorsed to 61 lakh borrowers, out of which Rs 1.52 lakh crore has been dispensed.

Qualified borrowers for the plan incorporate MSME units, business endeavors, singular credits for business purposes and MUDRA borrowers.

Reported as a component of the Atma Nirbhar Baharat bundle in May to help miniature, little and medium endeavors, the plan gave completely ensured and guarantee let loose advances for sums to 20% of remarkable advances as of February 29.

The plan was later extended to incorporate all business endeavors, people looking for credit for business purposes and MUDRA borrowers.

Borrowers with remarkable credit up to Rs 50 crore as on February 29 and with a yearly turnover of Rs 250 crore are qualified for advances under the plan.

Backing for focused on areas

Sitharaman additionally reported the dispatch of an assurance credit for supporting focused on areas. To be used for 100% ensure guarantee free extra credit at covered financing costs to:

Elements in 26 focused on areas distinguished by Kamath Committee in addition to medical care area with credit remarkable of above Rs 50 crore and up to Rs 500 crore as on 29.02.2020.

Elements with remarkable up to Rs 50 crore recently secured under the current plan.

No upper roof on yearly turnover.

Elements to be doing 30 days past due (SMA 0) as on 29.02.2020.

Extra credit up to 20% of extraordinary as on 29.02.2020.

Tenor of extra credit under ECLGS 2.0 to be 5 years, remembering a one year ban for head reimbursement and the plan will be accessible till 31.03.2021.

ECLGS 2.0 will give genuinely necessary alleviation to focused on areas by helping substances support work and meet liabilities. It is additionally expected to profit the MSME area which gives merchandise and ventures to qualified elements.

Focused on areas incorporate force, development, iron and steel, streets, land, discount exchanging, materials, shopper durables, flying, coordinations, lodgings, eateries and the travel industry, mining.