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Cabinet approves additional funding of up to Rs. three lakh crore through introduction of ECLGS

  • Posted By
    10Pointer
  • Categories
    Economy
  • Published
    21st May, 2020
  • Union Cabinet has approved additional funding of up to Rs. three lakh crore through introduction of Emergency Credit Line Guarantee Scheme (ECLGS).
  • Guaranteed Emergency Credit Line (GECL) facility to help eligible Micro, Small and Medium Enterprise (MSME) borrowers, including interested MUDRA borrowers.
  • Cabinet also decided 100 per cent credit guarantee coverage by National Credit Guarantee Trustee Company Limited (NCGTC) to Member Lending Institutions (MLIs).
  • The Cabinet also approved that the Scheme would be applicable to all loans sanctioned under GECL Facility during the period from the date of announcement of the Scheme to 31.10.2020, or till an amount of three lakh crore is sanctioned under the GECL, whichever is earlier.
  • The Emergency Credit Line Guarantee Scheme (ECLGS) has been formulated as a specific response to the unprecedented situation caused by COVID-19 and the consequent lockdown, which has severely impacted manufacturing and other activities in the MSME sector.
  • The salient features of the scheme include all MSME borrower accounts with outstanding credit of up to Rs. 25 crore as on 29.2.2020 and with an annual turnover of up to Rs. 100 crore would be eligible for GECL funding under the scheme.

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