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Equally, companies within the severely-hit sectors specified beneath the ECLGS 3.0, who haven’t tapped the ECLGS, can now avail of credit score help as much as 40% of their credit score excellent as of March 31, 2021, topic to a most restrict of Rs 200 crore per borrower.
The federal government on Wednesday prolonged the validity of its Rs 4.5-lakh-crore assured mortgage scheme for corporations and people by six months by means of March 2022 or till the restrict is used up, whichever is earlier.
It additionally expanded the scope of the Emergency Credit score Line Assure Scheme (ECLGS) to learn a bigger variety of Covid-hit companies forward of the pageant season and expedite the tempo of offtake that has slowed of late, following a powerful response within the preliminary months of its launch final yr.
As of September 24, loans sanctioned beneath varied avatars of the scheme (ECLGS 1.0, 2.0 and three.0) to about 1.15 crore companies stood at Rs 2.86 lakh crore, the finance ministry mentioned.
About 95% of the ensures issued are for loans sanctioned to micro, small and medium enterprises.
As per the newest choice, current debtors beneath the ECLGS 1.0 and a couple of.0 would qualify for extra credit score help of as much as 10% of the overall excellent mortgage as of February 29, 2020, or March 31, 2021, whichever is larger.
Companies that haven’t acquired help beneath the scheme (ECLGS 1.0 or 2.0) can avail credit score help as much as 30% of their excellent credit score as of March 31, 2021.
Equally, companies within the severely-hit sectors specified beneath the ECLGS 3.0, who haven’t tapped the ECLGS, can now avail of credit score help as much as 40% of their credit score excellent as of March 31, 2021, topic to a most restrict of Rs 200 crore per borrower.
Incremental credit score can be availed of inside these limits by current ECLGS debtors, whose eligibility rose due to the change in deadline to March 31, 2021 from February 29, 2020.
Accordingly, debtors who’ve already acquired help beneath the scheme and whose credit score excellent as of March 31, 2021 (excluding help beneath ECLGS) is larger than the extent on February 29, 2020 will probably be eligible for incremental help inside the cap stipulated beneath ECLGS 1.0, 2.0 or 3.0, the ministry mentioned.
Whereas sanctions beneath the scheme must be granted inside the March 2022 deadline, the final date of disbursement has additionally been prolonged by six months by means of June 2022.
As a part of its stimulus bundle, the Centre had on June 28 enhanced the restrict of loans beneath the ECLGS by Rs 1.5 lakh crore from the preliminary goal of Rs 3 lakh crore to melt the second Covid wave blow.
The ECLGS 1.0 was introduced as a part of the federal government’s Rs 21-lakh-crore aid bundle in Could 2020. The loans have been meant to help debtors in assembly their operational liabilities and restarting their companies following Covid-induced disruptions.
Below this, the federal government had pledged full assure for as much as 20% further, collateral-free working capital loans, topic to the Rs 3-lakh-crore restrict. Whereas this scheme was initially meant for less than MSMEs, the federal government has periodically broadened its scope to allow numerous companies and professionals to learn from it.
Rs 7,500-cr scheme for MFI used up in 75 days
The finance ministry additionally mentioned its Rs 7,500-crore credit score assure scheme, introduced on June 28, to facilitate concessional loans to an estimated 25 lakh small debtors by means of micro-finance establishments (MFIs) is totally utilised inside 75 days.
The scheme prolonged the help by means of 92 NBFC-MFIs/MFIs by means of 20 lenders. The federal government affords assure to banks for extending loans to the MFIs for on-lending as much as Rs 1.25 lakh to every borrower, which is geared toward boosting consumption on the grassroot stage.
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