ENA MSME 2022-01-18 08:34:33 <p><strong>New Delhi, 18 Jan (KNN)</strong> As per media reports the Indian Banks Association (IBA) has asked for the extension of Emergency Credit Line Guarantee Scheme (ECLGS) for MSMEs up until March 2023.</p> <p>Moreover, IBA has urged to give 10 per cent facility for companies under this scheme along with the inclusion of SMA-2 (special mention accounts).</p> <p>Accounts that have defaulted or are displaying repayment stress, however arent classified as non-performing assets (NPAs) are SMAs.</p> <p>As of now, SMA-2 accounts with a duration of up to 60-90 days are excluded from the scheme.</p> <p>To provide 100% guarantee coverage to Banks and NBFCs to enable them to extend emergency credit facilities to Business Enterprises / MSMEs in view of COVID-19 to meet their additional term loan/additional working capital requirements.</p> <p>The scope of ECLGS has seen its expansion in 4 parts, with the latest ECLGS 4.0 introduced in May 2021.</p> <p>It provides for 100 per cent collateral free guarantee to member lending institutions in respect of loans upto INR 2 crore extended to eligible hospitals/nursing homes/clinics/medical colleges / units engaged in manufacturing of liquid oxygen, oxygen cylinder etc. for setting up of on-she oxygen producing plants.</p> 28115 https://knnindia.co.in/news/newsdetails/msme/banks-call-for-one-year-extension-of-eclgs-for-msmes 2022-01-18 08:34:33 knnindia.co.in