Emergency Credit Line Guarantee Scheme (ECLGS)_00.1
UPSC Exam   »   How to Prepare for UPSC Prelims: Step by Step Guide for Beginners   »   Emergency Credit Line Guarantee Scheme (ECLGS)

Emergency Credit Line Guarantee Scheme (ECLGS)

 

Relevance

  • GS 3: Inclusive growth and issues arising from it.

 

Context

  • Recently, Ministry of Finance 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.

 

Modifications made in the scheme

  • Existing borrowers under ECLGS 1.0 & 2.0 would be eligible for additional credit support of up to 10% of total credit outstanding.
  • Businesses who have not availed assistance under ECLGS (ECLGS 1.0 or 2.0), can avail credit support of up to 30% of their credit outstanding.
  • Businesses in sectors specified under ECLGS 3.0, who have previously not availed ECLGS, can avail credit support up to 40% of their credit outstanding, to the maximum of Rs.200 crore per borrower;
  • Incremental credit can be availed within these limits by existing ECLGS borrowers whose eligibility increased because of change in cut-off date to 31.03.2021 from 29.02.2020.

 

India Export Initiative and IndiaXports 2021 Portal

 

ECLGS: Present scenario

  • The scheme has extended relief to over 1.15 crore Micro, Small and Medium Enterprises (MSMEs) and businesses.
  • Loans sanctioned have 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 Micro, Small and Medium Enterprises.

 

Emergency Credit Line Guarantee Scheme (ECLGS)_50.1

 

About ECLGS

  • Government launched ECLGS as a part of the Rs 20 lakh crore Covid-19 relief package called the Aatmanirbhar Bharat Abhiyan.
  • It aimed to provide Rs 3 lakh crore worth of collateral-free, 100% government-guaranteed loans to MSMEs to mitigate the distress caused by the COVID-induced lockdown.
  • Three versions of the scheme, namely ECLGS 1.0, ECLGS 2.0 and ECLGS 3.0 have been launched to expand the beneficiaries under the scheme.

Parameters

ECLGS 1.0 ECLGS 2.0 ECLGS 3.0
Beneficiaries MSMEs stressed due to COVID-induced lockdown. 26 stressed sectors identified by the Kamath Committee. Business enterprises in the hospitality, travel and tourism, leisure and sporting sectors.
Credit limit Up to 20 percent of their overall outstanding credit. Up to 20 percent of their overall outstanding credit. Up to 40 percent of the total credit outstanding.
Moratorium and Repayment 1-year moratorium period and a 4-year repayment period. 1-year moratorium period and a 4-year repayment period. The tenor of loans is six years, including a moratorium period of two years.
Ceiling for outstanding credit <Rs 25 crore <Rs 50 crore <Rs 500 crores

 

Production Linked Incentive Scheme: A Complete Analysis

Sharing is caring!

×

Download success!

Thanks for downloading the guide. For similar guides, free study material, quizzes, videos and job alerts you can download the Adda247 app from play store.

Thank You, Your details have been submitted we will get back to you.

Was this page helpful?

Leave a comment

Your email address will not be published. Required fields are marked *

Join India's largest learning destination

What You Will get ?

  • Job Alerts
  • Daily Quizzes
  • Subject-Wise Quizzes
  • Current Affairs
  • Previous year question papers
  • Doubt Solving session

Login

OR

Forgot Password?

Join India's largest learning destination

What You Will get ?

  • Job Alerts
  • Daily Quizzes
  • Subject-Wise Quizzes
  • Current Affairs
  • Previous year question papers
  • Doubt Solving session

Sign Up

OR
Join India's largest learning destination

What You Will get ?

  • Job Alerts
  • Daily Quizzes
  • Subject-Wise Quizzes
  • Current Affairs
  • Previous year question papers
  • Doubt Solving session

Forgot Password

Enter the email address associated with your account, and we'll email you an OTP to verify it's you.


Join India's largest learning destination

What You Will get ?

  • Job Alerts
  • Daily Quizzes
  • Subject-Wise Quizzes
  • Current Affairs
  • Previous year question papers
  • Doubt Solving session

Enter OTP

Please enter the OTP sent to
/6


Did not recive OTP?

Resend in 60s

Join India's largest learning destination

What You Will get ?

  • Job Alerts
  • Daily Quizzes
  • Subject-Wise Quizzes
  • Current Affairs
  • Previous year question papers
  • Doubt Solving session

Change Password



Join India's largest learning destination

What You Will get ?

  • Job Alerts
  • Daily Quizzes
  • Subject-Wise Quizzes
  • Current Affairs
  • Previous year question papers
  • Doubt Solving session

Almost there

Please enter your phone no. to proceed
+91

Join India's largest learning destination

What You Will get ?

  • Job Alerts
  • Daily Quizzes
  • Subject-Wise Quizzes
  • Current Affairs
  • Previous year question papers
  • Doubt Solving session

Enter OTP

Please enter the OTP sent to Edit Number


Did not recive OTP?

Resend 60

By skipping this step you will not recieve any free content avalaible on adda247, also you will miss onto notification and job alerts

Are you sure you want to skip this step?

By skipping this step you will not recieve any free content avalaible on adda247, also you will miss onto notification and job alerts

Are you sure you want to skip this step?