Inclusion of individual loans under ECLGS approved

The government has given the approval for inclusion of individual loans under the Emergency Credit Line Guarantee Scheme. The government has taken this decision after extensive discussions with the stakeholders and all the individual loans taken for business purposes will be considered under this guarantee scheme.


The government has increased the outstanding loans limit from earlier up to Rs 25 crores to Rs 50 crores. The maximum amount of funding under the scheme would also correspondingly increase from Rs 5 crores at present to Rs 10 crores (As it is 25% of the total amount). The annual turnover ceiling has also been increased from annual  Rs 100 crore to Rs 250 crore and with this these changes, the ambit of the ECLGS will also be expanded by an additional amount of more than  Rs 1 lakh crore.


In May, the government approved additional funding of Rs 3 lakh crore at a concessional rate of 9.25 per cent through the ECLGS scheme. So far, the banks have sanctioned around Rs 1.36 lakh crore under this scheme, whereas around Rs 87227 crores have already been disbursed. Now the scheme has been extended to individual loans in order to accommodate the demands of the NBFCs in the country.

Emergency Credit Line Guarantee Scheme (ECLGS)

Under this scheme, 100% guarantee coverage is to be provided by National Credit Guarantee Trustee Company Limited for additional funding of up to Rs 3 lakh crore to eligible MSMEs and interested MUDRA borrowers in the country. The credit will be provided in the form of a Guaranteed Emergency Credit Line facility. The tenure of the loan will be four years with a moratorium period of one year on the principal amount.

Public Sector Enterprises policy

The government is also planning to come up with a new policy with regard to the CPSEs since the government will define the strategic sectors which will not have more than four PSUs, as part of the ‘Atmanirbhar Bharat Abhiyaan’. Other state-owned firms in other segments will be privatized gradually.




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