The central government has now extended the scope of ECLSG to 26 sectors, who have not repaid the earlier loan for 60 days. The Finance Services Department of the Ministry of Finance has given this information.
The Central Government has given great relief in the process of taking loans under the Emergency Credit Line Guarantee Scheme (ECLGS). Now it will be easy for them to take loans, who have not repaid the loan taken in the last 60 days. The Department of Finance Services of the Ministry of Finance has given information about this. Department of Finance Services said that this facility will be given to 26 sectors undergoing crisis. This list includes Healthcare, Aviation, and corporate retail outlets of cement, construction, and textiles.
The government has taken this decision, following the recommendations of KV Kamath Committee, the former head of ICICI Bank. Under this relief, it will be easy for the borrowers of these sectors who have already taken a loan of 50 to 500 crores.
60 thousand crore rupees loan will be issued
In the growing cases of Kovid-19, many states have to impose other types of restrictions including lockdown. In view of this, the central government has decided to amend the ECLGS of Rs 3 lakh crore. It is estimated that about 80 percent loan has been issued under this scheme. Now loans worth only Rs 60,000 crore can be issued under this scheme. Initially, the government started this loan scheme for Micro, Small and Medium Enterprises (MSME).
The government has already expanded the scope of this scheme to many sectors
But, after the MSME sector did not take full advantage of this scheme, the government also opened it up to professionals. Now the hospitality, travel and tourism sectors can also take loans under ECLGS.
Who will benefit under the new amendment
Now, under the new amendment, this scheme will also be able to get an account classified under Special Mention Account (SMA) -0 or SMA-1 by 29 February 2020. These accounts have not been repaid between 31 and 60 days. Initially this facility was being given only to those loan account, who had made their repairs on time.
It is expected that after the announcement of fresh funding from the government, borrowers will be able to get loans from banks easily. They will also get a chance to repair their old loan. It will help them to maintain their business till the situation becomes normal.
