With a view to assist Covid-hit MSMEs additional, the federal government on Sunday introduced a three-month extension of its Rs 3 lakh crore Emergency Credit score Line Assure Scheme (ECLGS) to September 30, 2021, from June 30, 2021, or until ensures for an quantity of Rs 3 lakh crore are issued below the fourth revision of the scheme dubbed ECLGS 4.0. The Ministry of Finance additionally introduced a 100 per cent assure cowl to loans as much as Rs 2 crore to hospitals, nursing properties, clinics, medical schools for establishing on-site oxygen technology crops with the rate of interest capped at 7.5 per cent.
The ministry additionally introduced the extension of the tenor of the scheme for MSMEs and different entities which are eligible for restructuring as per the Reserve Financial institution of India (RBI) pointers as of May 5, 2021, and had borrowed credit score below ECLGS 1.0. From total tenure of 4 years comprising of reimbursement of curiosity solely through the first 12 months with reimbursement of principal and curiosity in 36 months below ECLGS 1.0 will now be capable of avail for a tenor of 5 years for his or her ECLGS mortgage, that’s, reimbursement of curiosity just for the primary 24 months with reimbursement of principal and curiosity in 36 months thereafter.
Furthermore, further ECLGS help of as much as 10 per cent of the excellent credit score as of February 29, 2020, has been supplied to debtors lined below ECLGS 1.0 according to restructuring as per RBI pointers. “Extra ECLGS help of as much as 10 per cent of the excellent to the debtors will allow them to beat the current monetary issues. It will be extra applicable if SME I categorized items had been allowed to avail these advantages. We had additionally requested computerized renewals of all statutory approvals for the working companies with out prices for the present 12 months. The federal government in addition to banks want to have a look at this case with compassion. We hope state governments may also reply the way in which central authorities and RBI have responded,” Manguirish Pai Raiker, Chairman, Nationwide Council for MSME, Assocham instructed Monetary Specific On-line.
The federal government has additionally eliminated the present restrict of Rs 500 crore mortgage excellent for eligibility below ECLGS 3.0 topic to most further ECLGS help to every borrower being restricted to 40 per cent or Rs 200 crore, whichever is decrease, the ministry mentioned on Sunday. The Ministry additionally prolonged the scope of ECLGS 3.0 to cowl the Civil Aviation sector.