Atmanirbhar Bharat 3.0: Emergency Line of Credit Guarantee Program for MSMEs, MUDRA Borrowers and Individuals Extended until March 31
Emergency Line of Credit Guarantee Program for MSMEs, MUDRA Borrowers and Individuals Extended to March 31 | Photo credit: BCCL
New Delhi: As part of the new Atmanirbhar 3.0 package, Finance Minister Nirmala Sitharaman announced on Friday that the Emergency Line of Credit Guarantee Program (ECLGS) for MSMEs, Businesses, MUDRA borrowers and individuals (loans to commercial purposes) has been extended until March 31, 2021.
Loans sanctioned under the program will be fully secured and unsecured. In addition, an additional credit of up to 20% of loans outstanding as of February 29, 2020, will be granted to entities with an outstanding credit of up to Rs 50 crore as of February 29, 2020, and annual turnover up to Rs 250 crore, which was up to 60 days late as of February 29th.
MSME units, business enterprises, individual business loans and MUDRA borrowers are eligible entities under this scheme. As of November 12, 2020, Rs 205 lakh crore has been sanctioned to 61 lakh borrowers under this emergency credit program and Rs 1.52 lakh crore has been disbursed.
Note that earlier on November 2, the government extended the Emergency Line of Credit Guarantee (ECLGS) program for one month until November 30, 2020, or until an amount of Rs 3 lakh crore is sanctioned as part of the program, whichever comes first.
Given the opening up of various sectors of the economy and the expected increase in demand during the current holiday season, the extension will provide a new opportunity for those borrowers who have yet to take advantage of the program. , to obtain credit under the Emergency Line of Credit Guarantee System, the government said.
As a reminder, on May 21, the Cabinet approved additional financing of up to Rs 3 lakh crore at a concessional rate of 9.25% through the Emergency Line of Credit Guarantee Program (ECLGS) for the MSME sector.