Govt extends Emergency Credit Line Guarantee Scheme by another three months

ECLGS 3.0 would involve extension of credit of upto 40% of total credit outstanding across all lending institutions as on 29 February 2020 (Reuters)

Union Government today extended the scope of Emergency Credit Line Guarantee Scheme (ECLGS) through the introduction of ECLGS 3.0 to cover business enterprises in hospitality, travel and tourism, leisure and sporting sectors which had, as on 29 February last year, total credit outstanding not exceeding Rs. 500 crore and overdues, if any, were for 60 days or less, on that date i.e. 29th Feb 2020.

ECLGS 3.0 would involve extension of credit of upto 40% of total credit outstanding across all lending institutions as on 29 February 2020 . The tenor of loans granted under ECLGS 3.0 shall be 6 years including moratorium period of 2 years.

Further, the validity of ECLGS that is ECLGS 1.0, ECLGS 2.0 & ECLGS 3.0 have been extended upto 30 June or till guarantees for an amount of Rs. 3 lakh crore are issued. Last date of disbursement under the scheme has been extended to 30 September.

The modifications introduced in the scheme, while providing an incentive to MLIs to enable availability of additional funding facility to the eligible beneficiaries will go a long way in contributing to economic revival, protecting jobs, and creating conducive environment for employment generation.

The revised operational guidelines in this regard shall be issued by National Credit Guarantee Trustee Company Ltd (NCGTC).

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