In order to help Covid-hit MSMEs additional, the government on Sunday announced a 3-month extension of its Rs 3 lakh crore Emergency Credit Line Guarantee Scheme (ECLGS) to September 30, 2021, from June 30, 2021, or till guarantees for an quantity of Rs 3 lakh crore are issued below the fourth revision of the scheme dubbed ECLGS 4.. The Ministry of Finance also announced one hundred per cent assure cover to loans up to Rs 2 crore to hospitals, nursing properties, clinics, health-related colleges for setting up on-website oxygen generation plants with interest price capped at 7.5 per cent.
The ministry also announced extension of the tenor of the scheme for MSMEs and other entities that are eligible for restructuring as per the Reserve Bank of India (RBI) suggestions as of May 5, 2021 and had borrowed credit below ECLGS 1.. From general tenure of 4 years comprising of repayment of interest only in the course of the initially 12 months with repayment of principal and interest in 36 months below ECLGS 1. will now be capable to avail for a tenor of 5 years for their ECLGS loan, that is, repayment of interest only for the initially 24 months with repayment of principal and interest in 36 months thereafter.
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Moreover, more ECLGS assistance of up to 10 per cent has been presented of the outstanding credit as of February 29, 2020 to borrowers covered below ECLGS 1. in line with restructuring as per RBI suggestions. The government has also removed the present limit of Rs 500 crore loan outstanding for eligibility below ECLGS 3. to be removed topic to maximum more ECLGS help to every single borrower getting restricted to 40 per cent or Rs 200 crore, whichever is decrease, the ministry mentioned on Sunday. The Ministry also extended the scope of ECLGS 3. to cover the Civil Aviation sector.