The government has extended the Emergency Line of Credit Guarantee (ECLGS) program of 4.5 lakh crore until March 31, 2022, to help businesses cope with the adverse effects of the pandemic.
ECGLS was due to expire on September 30 and has so far helped micro, small and medium enterprises (MSMEs) 1.15 crore. As of September 24, loans sanctioned under ECGLS exceeded 2.86 lakh crore, with around 95% of guarantees issued for loans sanctioned to MSMEs.
“The government has received requests from various industry bodies and other stakeholders to expand the program to ensure continued support to eligible sectors / businesses,” the finance ministry said.
“With the aim of supporting various companies affected by the second wave of the COVID-19 pandemic, it was decided to extend the deadline for ECLGS until 31.03.2022 or until guarantees in the amount of ₹ 4.5 lakh crore be issued under the program, depending on is earlier, ”he added.
Some changes have been made to the plan’s coverage standards and the National Credit Guarantee Trustee Company Limited will issue revised operational guidelines to implement these changes.
“The introduced change would ensure that businesses affected by the second wave of COVID 2019 get improved unsecured liquidity. In addition, it provides much needed support for all ECLGS borrowers. [which mainly consist of MSME units] in time for the busy / festival season, ”the ministry said.