Finance Minister Nirmala Sitharaman on Monday announced an additional Rs 1.5 lakh crore for government's Emergency Credit Line Guarantee Scheme (ECLGS).
The government had announced ECLGS as part of 'Atmanirbhar Bharat Package' in May 2020. With the latest announcement, the overall cap of admissible guarantee under the scheme has been raised to Rs 4.5 lakh crore from Rs 3 lakh crore earlier.
Under the scheme, 100 per cent guarantee coverage is provided by National Credit Guarantee Trustee Company Limited (NCGTC) for additional funding in the form of a Guaranteed Emergency Credit Line (GECL) facility.
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The first three phases of ECLGS have resulted in credit disbursal of Rs 2.69 lakh crore to 1.1 crore units by 12 public sector banks, 25 private sector banks and 31 non-banking financial companies, Sitharaman said while announcing a stimulus package for the economy hit by the second wave of COVID-19 pandemic.
In March this year, the Centre had extended the scope of the scheme through introduction of ECLGS 3.0 to cover business enterprises in hospitality, travel and tourism, leisure and sporting sectors, which have been hit hard by the pandemic.
The finance minister said Rs 4,000 crore has already been given to contact-intensive sectors through this window and they will continue to be covered under the scheme. Further sector-wise details will be finalised as per the evolving needs.
The limit of admissible guarantee and loan amount is proposed to be increased above existing level of 20 per cent of outstanding on each loan under the scheme.
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