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The federal government has prolonged the ₹4.5 lakh crore Emergency Credit score Line Assure Scheme (ECLGS) until March 31, 2022, to assist companies deal with the pandemic’s antagonistic results.
The ECLGS was as a consequence of expire on September 30 and has helped 1.15 crore micro, small and medium enterprises (MSMEs) to date. As on September 24, loans sanctioned beneath the ECLGS have crossed ₹2.86 lakh crore, with about 95% of the ensures issued for loans sanctioned to MSMEs.
“Authorities has been receiving calls for from numerous trade our bodies and different stakeholders to increase the scheme to make sure continued assist to eligible sectors/companies,” the Finance Ministry mentioned.
“With a view to assist numerous companies impacted by the second waveof COVID-19 pandemic, it has been determined to increase the timeline of ECLGS until 31.03.2022 or until ensures for an quantity of ₹4.5 lakh crore are issued beneath the scheme, whichever is earlier,” it added.
Just a few modifications have been made to the scheme’s protection norms and the Nationwide Credit score Assure Trustee Firm Restricted will difficulty revised operational tips to implement these modifications.
“The modification launched would make sure that companies adversely impacted by the second wave of COVID 2019 get enhanced collateral free liquidity. Additional, this supplies a lot wanted assist to all of the ECLGS debtors [which mainly consist of MSME units] in time for the busy/pageant season,” the Ministry mentioned.
Supply- thehindu