Sanctions under ECLGS scheme for MSMEs cross 64%
New Delhi, 22 Nov (KNN) The Emergency Credit Line Guarantee Scheme (ECLGS) launched by the Finance Ministry in May 2020 has reported that it has sanctioned 64.4 per cent of the total allocation of scheme of INR 4.5 lakh crore.
It has significantly increased as compared to INR 2.86 lakh crore loan sanction as of September, 2021.
Speaking at an online event held for the launch of RBI Retail Direct Scheme, Prime Minister Narendra Modi said, “The majority of the beneficiaries of ECLGS are MSMEs through which they have been supported to strengthen their businesses.”
In view of the recent updates regarding ECLGS, the Centre announced in September for borrowers to make them eligible for additional credit aid of up to 10 per cent of total credit outstanding as of 29 February, 2020 or March 31, 2021, whichever is higher.
The government also allowed enterprises in sectors specified under ECLGS 3.0, who have previously not availed ECLGS, to avail credit support up to 40 per cent of their credit outstanding as of March 31 to the maximum of INR 200 crore per borrower.
