The Emergency Credit Line Guarantee Scheme has been granted a three-month extension and can now be legitimate until September 30.
The Finance Ministry has enlarged the scope of the ₹3 lakh crore Emergency Credit Line Guarantee Scheme (ECLGS) to cowl loans up to ₹ 2 crore for setting up on-site oxygen technology plants at healthcare services and introduced within the ailing civil aviation sector underneath its ambit.
With the capital intensive-aviation sector underneath the scheme, the federal government has additionally dropped the ₹ 500 crore mortgage excellent restrict for availing emergency credit. The most extra help to every borrower has, nonetheless, been restricted to 40% of the excellent quantity, or ₹ 200 crore, whichever is decrease.
The ECLGS is a key ingredient of the federal government’s stimulus and assist measures for companies battered by the lockdown restrictions put in place in March 2020 to curb the COVID-19 pandemic. The Ministry attributed the most recent adjustments within the scheme to ‘disruptions caused by the second wave of COVID-19 pandemic to businesses across various sectors’.
The scheme had been granted an additional three-month extension and would now be legitimate until September 30, with disbursals from lenders permitted up to December 31, the Ministry mentioned. However, the scheme’s general measurement has been retained at ₹ 3 lakh crore.
“100% guarantee cover to loans up to ₹ 2 crore to hospitals, nursing homes, clinics, medical colleges for setting up on-site oxygen generation plants, interest rate capped at 7.5%,” the Ministry mentioned in an announcement. The National Credit Guarantee Trustee Company is anticipated to difficulty detailed operational pointers on the scheme.
Additional credit help of up to 10% of excellent loans as on February 29, 2020, has been granted to current debtors underneath the scheme. The compensation tenure for such debtors has additionally been reworked.
Borrowers with an ELCGS mortgage of 4 years’ tenure had been required to solely repay curiosity in the course of the first 12 months and repay principal with curiosity within the subsequent 36 months.
Now, they are going to be capable to avail a 5 years’ mortgage tenure with solely curiosity repayments to reckon with for the primary 24 months.
The authentic ELCGS supplies extra working capital finance for 20% of a borrower’s excellent credit as on February 29, 2020. The financing is within the kind of a time period mortgage at a concessional fee of curiosity.