Govt. extends emergency credit line guarantee scheme till June

The government on Wednesday extended the ₹3-lakh-crore emergency credit line guarantee scheme by another three months till June 30 and also widened its scope to new sectors, including hospitality, travel and tourism.

ECLGS 3.0 would involve extending credit of up to 40% of total credit outstanding across all lending institutions as on February 29, 2020, the finance ministry said in a statement.

The tenor of loans granted under ECLGS 3.0 would be 6 years ,including a moratorium period of 2 years.

"In recognition of the continuing adverse impact of COVID-19 pandemic on certain service sectors, the government has now extended the scope of ECLGS through introduction of ECLGS 3.0 to cover business enterprises in Hospitality, Travel & Tourism, Leisure & Sporting sectors which had, as on February 29, 2020, total credit outstanding not exceeding ₹500 crore and overdues, if any, were for 60 days or less, on that date," it said.

Further, the validity of ECLGS — ECLGS 1.0, ECLGS 2.0 and ECLGS 3.0 — have been extended up to June 30, 2021 or till guarantees for an amount of ₹3 lakh crore are issued, the ministry said. The last date for disbursement under the scheme has been extended to September 30.

The scheme was valid till October 2020 and it was extended to November end. The scheme was again extended in November as part of Aatmanirbhar Bharat 3.0 package till March 31, 2021 by including the 26 stressed sectors identified by the RBI-constituted K.V. Kamath committee.

"The modifications introduced in the scheme while providing an incentive to member lending institutions 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 statement said.

The revised operational guidelines would be issued by National Credit Guarantee Trustee Company Ltd (NCGTC).

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