Govt allows SMA-1 borrowers under the ambit of newly expanded ECLGS 2.0

New Delhi, Apr 17 (KNN) The government has expanded the scope of Emergency Credit Line Guarantee Scheme (ECLGS) 2.0, and said that Special Mention Accounts-1 (SMA) will now be eligible for credit under the scheme.

"Scope of ECLGS 2.0 expanded! SMA-1 borrowers in the healthcare sector and 26 other high stress sectors (as identified by the Kamath Committee) are now eligible under ECLGS 2.0," the Department of Financial Services (DFS) said in a tweet on Friday.

Special Mention Accounts are those assets/accounts that shows symptoms of bad asset quality in the first 90 days itself or before it being identified as NPA. The SMA are usually categorized in terms of duration. For example, in the case of SMA -1, the overdue period is between 31 to 60 days.

It comprises all MSME borrower accounts with combined outstanding loans across all MLIs (member lending institution) of up to Rs 50 crore in any sector and up to Rs 500 crore in respect of borrowers in the hospitality sector, travel and tourism sector and leisure and sporting sector and classified as regular, SMA-0 or SMA-1 as on February 29, 2020, said a latest note on Frequently Asked Questions (FAQs) on the scheme.

"All MSME borrower accounts in the 26 sectors identified by the Kamath Committee on Resolution Framework in its report of September 04, 2020 and the Healthcare sector having combined outstanding loans across all MLIs above Rs 50 crore and not exceeding Rs 500 crore and classified as regular, SMA-0 or SMA-1 as on 29.2.2020," the note added.