To deal with the economic impact of Corona, this scheme was announced till now sanctioning 1.87 lakh crores, amounting to 1.36 lakh crores.
The central government is not in the mood to extend the Rs 3 lakh crore Emergency Credit Line Guarantee Scheme (ECLGS) announced for MSMEs from 31 October. According to sources, 65 percent of the amount has been approved under the scheme so far. The scheme was launched to provide financial support to micro, small and medium enterprises (MSMEs) and businesses in the slowdown caused by the Corona epidemic.
Corona affected MSME can take loan
The source says that the objective of this scheme is to support all MSMEs and businesses affected by Corona. If one does not seek help under this scheme then there is no need to extend its duration. According to the source, the deadline of this scheme will not be increased despite the scope. On 1 August, the government doubled the maximum loan outstandings, expanding the scope of the scheme. Apart from this, professionals like doctors, lawyers, chartered accountants were also included in this scheme for business purposes.
MSMEs can take loans up to 50 crores
In order to benefit more and more companies in this scheme, the government had increased the loan amount from 25 crores to 50 crores. Apart from this, the maximum amount of Guaranteed Emergency Credit Line (GECL) was also increased from the current five crore to 10 crore rupees. The scheme was part of the Rs 20.97 lakh crore economic package announced by the government due to the coronavirus epidemic. Companies with a turnover of up to Rs 250 crore can avail this scheme.
Till 5 October, the amount of 1.87 lakh crore approved
According to Finance Ministry data, banks and NBFCs have approved loans worth Rs 1,87,579 lakh crore till October 5 under this scheme. Out of this, an amount of Rs. 1,36,140 lakh crore has been distributed. Under this scheme, loans are being given to MSMEs at 9.25% annual concessional rate. The scheme has 100% guarantee coverage from the National Credit Guarantee Trustee Company (NCGTC).