The ECLGS was announced among the critical factors from the Rs 2 trillion economic stimulus bundle underneath the ‘Aatmanirbhar Bharat Abhiyan’ in May 2020.
The Modi government may extend the Emergency Line Of Credit Guarantee Plan (ECLGS) for Micro, Small & Medium Enterprises (MSMEs) by six several weeks past the current deadline of finish-March.
“A choice on extending the timeline is into consideration”, a government official told Business Today TV.
Since beginning, the plan provides relief to in excess of 10.5 million crore MSME companies.
The ECLGS was announced among the critical factors from the Rs 2 trillion economic stimulus bundle underneath the ‘Aatmanirbhar Bharat Abhiyan’ in May 2020. It provides additional capital finance by means of a phrase loan to MSMEs and professionals. Initially, its corpus was Rs 3 trillion, but was eventually elevated to Rs 4.5 trillion throughout the second Covid pandemic wave.
In September 2021, Secretary of state for Finance had extended the timeline of ECLGS to March 2022.
Some modifications towards the plan were also announced including allowing existing borrowers to become qualified for further credit support as high as 10 percent of total credit outstanding as on March 31 this past year. Companies who’d not availed assistance underneath the three phases could avail assistance as much as 40 percent of the credit outstanding.