Emergency Credit Line Guarantee Scheme (ECLGS) 3.0:
In recognition of the continuing adverse impact of the COVID-19 pandemic on certain service sectors, the Government has now extended the scope of the Emergency Credit Line Guarantee Scheme (ECLGS) through the introduction of ECLGS 3.0.
- ECLGS 3.0 will cover business enterprises in Hospitality, Travel & Tourism, Leisure & Sporting sectors which had, as on 29.02.2020, total credit outstanding not exceeding Rs. 500 crore and overdues, if any, were for 60 days or less, on that date i.e., 29th Feb 2020.
- ECLGS 3.0 would involve the extension of credit of up to 40% of total credit outstanding across all lending institutions as on 29.02.2020. The tenor of loans granted under ECLGS 3.0 shall be 6 years including a moratorium period of 2 years.
- Further, the validity of ECLGS i.e., ECLGS 1.0, ECLGS 2.0 & ECLGS 3.0 has been extended up to 30.06.2021 or till guarantees for an amount of Rs. 3 lakh crore is issued.
- The last date of disbursement under the scheme has been extended to 30.09.2021.
- The modifications introduced in the scheme while providing an incentive to MLIs to enable the availability of additional funding facilities to the eligible beneficiaries will go a long way in contributing to economic revival.
- The revised operational guidelines in this regard shall be issued by National Credit Guarantee Trustee Company Ltd (NCGTC).