Federal government has decided to extend emergency situation line of credit guarantee plan till end of 2021-22Government has actually chosen to extend the duration of the Emergency Credit Limit Warranty Scheme (ECLGS) till March 31, 2022, sticking to demands from a number of market bodies and related stakeholders, to make sure assistance to services which have been affected by the Coronavirus pandemic.The scheme's timeline has actually been extended till completion of the current financial year or till guarantees for a quantity of Rs 4.5 lakh crore are provided under it, whichever happens previously, a declaration released by the Financing Ministry said.In addition to this, the last date of disbursement of credit under it has actually also been extended till June 30, 2022.
The ECGLS had been introduced by the federal government in May 2020, simply a month after the nation-wide lockdown had actually been imposed in March 2020, with the goal of offering financial relief to service which had been impact by the lockdown.Some modifications have been effected in the plan to make sure support to companies which had been struck by the second wave of the pandemic.
Under these modifications, existing borrowers will be qualified for additional credit support of approximately 10 per cent of total exceptional credit as on February 29, 2020 or March 31, 2021, whichever is higher.Those services which had not get monetary support under ECGLS 1.0 or 2.0, will also have the ability to get credit of as much as 30 per cent of their impressive credit as on March 31, 2021.
Companies which are in sectors covered under ECLGS 3.0 and who have not availed the plan, will be able to seek financial aid of up to 40 per cent of their impressive credit as on March 31, 2021 to the optimum of Rs 200 crore per borrower.The changes in the scheme have actually been made to ensure that those services hit by the 2nd wave of the pandemic get enhanced security free liquidity, main sources said.Most of the credit extended under the plan has been to micro, little and medium enterprises and till date loans worth Rs 2.86 lakh crore have actually been disbursed.