Credit and Finance for MSMEs: Emergency Credit Line Guarantee Scheme (ECLGS), which was launched in May 2020 as component of the Atmanirbhar Bharat campaign to address the liquidity crisis of Covid-hit current MSME borrowers, has enabled sanctioning 60.6 per cent of the Rs 4.5 lakh crore scheme limit. As of July 2, 2021, Rs 2.73 lakh crore in loans was sanctioned, of which Rs 2.14 lakh crore was disbursed by companion banks and NBFCs. Moreover, guarantees have currently been issued for loans granted to about 1.09 crore MSMEs, according to the Department of Financial Services. The details was shared by the new MSME Minister Narayan Tatu Rane in a written reply to a query in the Rajya Sabha on Monday.
The government had last month announced raising the all round cap of admissible assure by Rs 1.5 lakh crore from Rs 3 lakh crore at the time of the scheme’s launch last year to Rs 4.5 lakh crore. ECLGS has currently been revised 4 occasions to improve its scope and advantage MSMEs and other borrowers based on the many market suggestions. For instance, MSME units, organization enterprises, Mudra borrowers, and person loans for organization objective obtaining loan outstanding up to Rs 50 crore and days previous due up to 60 days as on February 29, 2020 have been eligible below ECLGS 1.. The scope was enlarged below ECLGS 2. with the inclusion of borrowers in 26 stressed sectors identified by the Kamath Committee & the healthcare sector and obtaining loan outstanding above Rs 50 crore and up to Rs 500 crore and days previous due up to 60 days as of February 29, 2020.
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Under ECLGS 3., the government had additional integrated borrowers in hospitality, travel & tourism, leisure & sporting, and civil aviation sectors. Likewise, below ECLGS 4., current hospitals, nursing properties, clinics, health-related colleges or units engaged in manufacturing of liquid oxygen, oxygen cylinders, and so on., and obtaining credit facility with a lending institution with days previous due up to 90 days as of March 31, 2021, have been also integrated.
The scheme has been extended several occasions from October last year to November followed by March 2021, June 2021, and at the moment till September 2021, or till guarantees for the quantity are issued below the fourth revision of the scheme dubbed ECLGS 4.. The minister had stated on June 28, 2021, that the government had disbursed Rs 2.69 lakh crore to 1.1 crore units by 12 public sector banks, 25 private sector banks, and 31 non-banking monetary businesses.