1.18 cr borrowers benefited with Rs 3.57 lakh cr under ECLGS

New Delhi, Dec 12 (KNN) Benefiting 1.19 crore borrowers, guarantees amounting to Rs 3.58 lakh crore have been issued under Emergency Credit Line Guarantee Scheme (ECLGS) as on November 30, 2022. 

ECLGS was launched in May, 2020 as part of Aatmanirbhar Bharat Abhiyaan to support eligible MSMEs and business enterprises in meeting their operational liabilities and restarting their businesses.

Under the scheme, 100 per cent credit guarantee is extended to the lending institutions for loans extended by them under the scheme to eligible borrowers. 

The admissible guarantee limit under the scheme has been increased from Rs 4.5 lakh crore to Rs 5 lakh crore, with the additional guarantee cover of Rs 50,000 crore earmarked exclusively for the Hospitality and related enterprises including Civil Aviation sector.

Most of the MSME borrowers have loans outstanding up to Rs 50 crore. 

For this category of borrowers, the ECLGS scheme was an ‘opt out’ scheme, i.e. eligible support was to be provided by the lenders to such category of eligible borrowers, unless the MSME borrowers decided not to avail the support or were ineligible. 

Thus, the scheme was so designed that it was easily accessible and available to the MSMEs.  (KNN Bureau)