Empowering MSMEs with News & Insights

FIEO urges govt to extend ECLGS loan repayment period by one more year

Updated: Aug 18, 2022 10:53:47am
image

FIEO urges govt to extend ECLGS loan repayment period by one more year

New Delhi, Aug 18 (KNN) Federation of Indian Export Organisations (FIEO) has requested the government to consider extending loan repayment period under Emergency Credit Line Guarantee Scheme (ECLGS) by one more year.

Presently the repayment period is of three-four years including the moratorium period under the scheme which has been called as a very short period by the Parliamentary Standing Committee on Industry and recommended an extension up to seven to eight years.

FOLLOW US on GOOGLE NEWS

Thanking the government for enhancing the limit under the ECLGS Scheme from Rs 4.5 lakh crore to Rs 5 lakh crore with additional allocation of Rs 50,000 crore solely for hospitality and related sectors, Dr A Sakthivel, President, FIEO said that the enhancement is expected to provide much needed support to enterprises in these sectors.

“This will encourage banks to provide additional credit of up to Rs 50,000 crore at a very competitive cost,” he said.

FIEO chief further said that it will help worst victims of Covid, which are still struggling to regain ground and aid the enterprises to meet their operational liabilities and further their businesses.

He urged the government to consider extending the repayment period by one more year for ECLGS 1.0, 2.0, 3.0 and 4.0 so that the repayment burden on the enterprises is reduced as businesses are again facing headwinds.

Sakthivel said that the ECLGS scheme has been extremely helpful to the industry by providing collateral free credit, at a time when the quality of collateral has significantly deteriorated due to Covid.  (KNN Bureau)

COMMENTS

    Be first to give your comments.

LEAVE A REPLY

Required fields are marked *