The Modi government may extend the Emergency Credit Line Guarantee Scheme (ECLGS) for Micro, Small & Medium Enterprises (MSMEs) by six months beyond the current deadline of end-March.
"A decision on extending the timeline is under consideration", a government official told Business Today TV.
Since inception, the scheme has provided relief to over 10.5 million crore MSME businesses.
The ECLGS was announced as one of the key components of the Rs 2 trillion economic stimulus package under the 'Aatmanirbhar Bharat Abhiyan' in May 2020. It offers additional working capital finance in the form of a term loan to MSMEs and professionals. Initially, its corpus was Rs 3 trillion, but was eventually raised to Rs 4.5 trillion during the second Covid pandemic wave.
In September 2021, Ministry of Finance had extended the timeline of ECLGS to March 2022.
Some modifications to the scheme were also announced including allowing existing borrowers to be eligible for additional credit support of up to 10 per cent of total credit outstanding as on March 31 last year. Businesses who had not availed assistance under the three phases could avail assistance up to 40 per cent of their credit outstanding.
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