Emergency Credit Line Guarantee Scheme Deadline Extended

Emergency Credit Line Guarantee Scheme deadline extended for MSMEs, now the scheme can be availed to this date.

The government has extended the deadline for the Emergency Credit Line Guarantee Scheme for a month to provide loans to MSMEs at an easy rate.

The reason for this is that the scheme has so far failed to meet the target of Rs 3 lakh crore. The duration of this scheme was at the end of October.

The scheme was introduced to reduce the problems arising out of the lockdown caused by Coronavirus and to provide loans to various sectors including MSME.

The scheme was announced by Finance Minister Nirmala Sitharaman as part of the Self-Reliant India Campaign Package.

In a statement issued by the Finance Ministry, the deadline for this scheme has been extended till November 30 or till the approval of a loan of Rs. 3 lakh crore.

The move has been taken in the hope of opening various sectors of the economy and increasing demand during the current festive season.

This statement said, “The extension of time will give more opportunities to such borrowers who have not availed the scheme so far to get credit under this scheme.”

According to the data provided by the respective lenders and other lending institutions on the ECLGS portal, an amount of Rs 2.03 lakh crore has been approved for 60.67 lakh borrowers so far.

At the same time, an amount of Rs 1.48 lakh crore has been disbursed.

Under this scheme, MSMEs, business enterprises, personal borrowers with a target of business, and borrowers of Mudra loans can get up to 20 percent of the credit outstanding till February 29, 2020, in the form of loans.

Under this scheme, the rate of interest has been reduced to 9.25 percent for banks and financial institutions and 14 percent for non-banking finance companies.

This loan can be available for four years. At the same time, a moratorium can be found on the payment of principal for one year.

After accelerating manufacturing and industrial production for two consecutive months, the government is now fully engaged in bringing the service sector back on track.

So that the economy can be brought on the path of development. The service sector contributes 55.39 percent to the country’s Grass Vane Aided (GVA).

According to Finance Ministry sources, the next relief package will take special care of the service sector.

These mainly include sectors such as travel, tourism, hospitality, and civil aviation. All these sectors are employable, which will help in the restoration of employment.