INSUBCONTINENT EXCLUSIVE:
Covid pandemic: Government has extended scope of emergency credit schemeThe Centre has enhanced the scope of the emergency credit line
guarantee cover will be given for loans up to Rs two crores to hospitals and nursing homes for setting up oxygen plants
The interest rate has been capped at 7.5 per cent.According to the decision announced by the Finance Ministry, borrowers who are eligible
for restructuring as per RBI's May 5, 2021 guidelines, and who had availed loans under the initial ECLGS, for a period of four years, will
now be able to avail loans for a tenure of five years.While earlier as per conditions of the four year loan period, repayment of interest
could be done only during the first 12 months with repayment of principal and interest amount in 36 months thereafter, now under the
conditions of the five year loan period, repayment of interest can be done for the first 24 months, while repayment of principal and
interest can be done in 36 months period thereafter.The Government has also decided to remove the current ceiling of Rs 500 crore of loan
outstanding for eligibility under ECLGS 3.0
Also disbursement under the scheme has been permitted up to December 31, 2021.The ECLGS was announced as part of the Atma Nirbhar Bharat
Package (ANBP) by the Centre a year back, to provide fully guaranteed and collateral free additional credit to micro small and medium
livelihoods and helping in seamless resumption of business activity
These changes will further facilitate flow of institutional credit at reasonable terms, a statement issued by the Finance Ministry said.
