NEW DELHI: The Ministry of Finance on Sunday further Enlarged the scope of This Emergency Credit Line Guarantee Scheme (ECLGS) Cancel the economic disruption Brought on by the next wave of This Covid-19 pandemic.
According to an official announcement by the Ministry, beneath the ECLGS 4.
0, 100 percent guarantee pay is going to soon be extended to loans up to Rs two crore awarded to physicians, nursing homes, clinics, and medical schools for establishing onsite oxygen production plants.
The interest rate was capped at 7.
5 percent as well.
“Borrowers that are qualified for restructuring according to Reserve Bank of India (RBI) guidelines of May 5 and had lien loans underneath ECLGS 1.
0 of total tenure of four decades containing repayment of interest only through the initial 12 months together with repayment of interest and principal in 36 months afterwards will currently be in a position to avail a designation of five years to get their ECLGS loan i.
e.
repayment of interest just for the first 24 weeks together with repayment of interest and principal in 36 months afterwards,” the announcement read.
The ministry stated that added ECLGS help of around 10 percent of their unpaid at February 29 to debtors insured beneath ECLGS 1.
0, in comparison with restructuring according to RBI guidelines of May 5.
“Present ceiling of Rs 500 crore of loan exceptional for eligibility under ECLGS 3.
0 to be eliminated, subject to max added ECLGS help to every debtor being restricted to 40 percent or Rs 200 crore, whichever is lower,” it stated.
In addition, the legitimacy of ECLGS expanded to September 30 or until warranties for an quantity of Rs 3 lakh crore was issued and disbursement under the plot is allowed around December 31.
“The alterations in ECLGS will improve the usefulness and effect of ECLGS by offering added help to MSMEs, protecting livelihoods and assisting in an seamless resumption of company action.
These modifications will further ease the flow of institutional credit at reasonable conditions.
Detailed operational instructions in this respect are being individually issued from the National Credit Guarantee Trustee Company (NCGTC),” the finance ministry said.
View Covid-19: Centre expands Emergency Credit Line Guarantee Scheme amid moment tide
