Inclusion of professionals in ECLGS will result in creation of job opportunities: Expert
New Delhi, Aug 5 (KNN) The centre has rightly expanded the Emergency Credit Loan Guarantee Scheme (ECLGS) of Micro, Small and Medium Enterprises (MSME) to a certain category of self-employed professionals in India such as Doctors, Lawyers, Chartered Accountants and other Professions.
As these professionals have now come within the ambit of ECLGS scheme, how will the economy be impacted through this? To get an answer of the same KNN India spoke to Yogendra Kapoor, an Economist as well as Tax Expert who welcomed the step.
''It's a welcome step by the government although a little delayed one in current circumstances,'' he said.
Kapoor further stated that as of July 29, loans of as much as Rs 1,36,155 crore were sanctioned to 40 lakh units, of which Rs 87,227 crore has already been disbursed. The Indian economy will benefit in multi fold manners by the measures initiated by the government.
''It will result in sustenance and creation of job opportunities and it will also increase demand for other goods and services as the money earned by self-employed professionals and job seekers will result in increase of domestic spending activities that will benefit the Economy,'' he avowed.
He further said that it would not only result in increase of GST collections for both state and central government but it will result in increased private investment for expansion of professional activities and set ups.
He also said that professionals comprise those persons who are respected in the society, carry their operations in a stabilised, transparent and risk-free manner as compared to normal businesses and have available demand for their services in the present Covid Era.
''Banks have to now "Walk the Talk" on the platform created by the government and extend all much-needed support in implementation of this scheme by providing collateral-free working capital loans under the ECLGS to all these notified category of professionals after carrying out their due diligence.,'' he added.
Last week, apart from allowing professionals within the ambit of ECLGS, the Finance Minister also widened the scope of the Rs 3-lakh crore MSME credit guarantee scheme by doubling the upper ceiling of loans outstanding to Rs 50 crore.
The Finance Ministry has increased the annual turnover ceiling of companies that could avail loans under the scheme to Rs 250 crore from Rs 100 crore at present. The maximum amount of loans that can be availed under the scheme has also been increased to Rs 10 crore from Rs 5 crore.