Govt extends emergency loan scheme till March 31, 2022

Centre extends emergency loan scheme to MSMEs till March 31, 2022

The last date of disbursement under the scheme has also been extended to June 30, 2022

 Representative image. Credit: iStock Photo

Extending further support to Covid-hit MSMEs, the Centre on Wednesday enlarged the scope of its Rs 4.5 lakh crore Emergency Credit Line Guarantee Scheme (ECLGS) till 31 March, 2022.

ECLGS, since its launch, has extended relief to over 1.15 crore micro, small and medium enterprises (MSMEs) and businesses. It has provided support to eligible borrowers in meeting their operational liabilities and restarting their businesses in the wake of disruptions caused by the pandemic.

As of September 24, loans sanctioned crossed Rs 2.86 lakh crore under the scheme and out of total guarantees issued, about 95% of the guarantees issued are for loans sanctioned to MSMEs, according to official data.

“Government has been receiving demands from various Industry bodies and other stakeholders to extend the scheme to ensure continued support to eligible sectors/businesses. With a view to support various businesses impacted by the second wave of the pandemic, it has been has decided to extend the timeline of Emergency Credit Line Guarantee Scheme (ECLGS) till 31.03.2022 or till guarantees for an amount of Rs 4.5 lakh crore are issued under the scheme, whichever is earlier,” said a finance ministry statement.

Further, the last date of disbursement under the scheme has also been extended to June 30, 2022.

The modification introduced would ensure that businesses adversely impacted by the second wave of Covid-19 get enhanced collateral-free liquidity. This provides much-needed support to all the ECLGS borrowers (which mainly consist of MSME units) in time for the busy festival season, the ministry said.

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