Government extends emergency credit line guarantee program until June
The government extended the Rs 3-lakh-crore emergency line of credit guarantee program on Wednesday for an additional three months until June 30 and also broadened its scope to new sectors, including hospitality. , travel and tourism.
ECLGS 3.0 would involve the granting of credits of up to 40% of the total outstanding loans to all credit institutions as of February 29, 2020, the finance ministry said in a statement.
The duration of loans granted under ECLGS 3.0 would be 6 years, including a moratorium period of 2 years.
In recognition of the continued negative impact of the COVID-19 pandemic on certain service sectors, the government has now extended the reach of ECLGS by introducing ECLGS 3.0 to cover businesses in the hospitality sectors , travel and tourism, leisure and sport which had, as of February 29, 2020, the total outstanding credit not exceeding 500 crore rupees and the delays, if any, were 60 days or less, at that time. date, ” he said.
In addition, the validity of ECLGS – ECLGS 1.0, ECLGS 2.0 and ECLGS 3.0 – has been extended until June 30, 2021 or until guarantees in the amount of Rs 3 lakh crore are issued, it said. the Ministry. The deadline for disbursement under the program has been extended to September 30.
The program was valid until October 2020 and it was extended until the end of November. The program was again extended in November as part of the Aatmanirbhar Bharat 3.0 package until March 31, 2021 by including the 26 stressed sectors identified by the KV Kamath committee formed by the RBI.
“The changes introduced in the program, while encouraging member credit institutions to allow the availability of an additional financing facility for eligible beneficiaries, will greatly contribute to economic recovery, job protection and the creation of an environment conducive to job creation, ”the statement read.
The revised operational guidelines would be issued by National Credit Guarantee Trustee Company Ltd (NCGTC).
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