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new Delhi20 minutes ago
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The Guaranteed Loan Scheme was announced by Finance Minister Nirmala Sitharaman under the Third Self-Reliant India Financial Relief Package.
- 26 distressed sectors identified by Kamat committee to get guaranteed loan
- Under the scheme NCGTC will give 100% guarantee for the loan
The Finance Ministry on Thursday formally informed banks and non-banking finance companies about the Extended Emergency Credit Line Guarantee Scheme (ECLGS) 2.0. The Guaranteed Loan Scheme was announced by Finance Minister Nirmala Sitharaman under the Third Self-Reliant India Financial Relief Package. Under the scheme, 26 crisis sectors identified by the Kamat Committee will be guaranteed loan assistance.
The term of the additional loan under ECLGS 2.0 will be 5 years, with a moratorium of 1 year. The scheme will include companies on which 29 Favri owed Rs 50–500 crore. The plan aims to provide relief to companies from the crisis arising from coronavirus lockdown.
The total size of the credit line will remain Rs 3 lakh crore.
The total size of the credit line will remain Rs 3 lakh crore. Under the scheme, the National Credit Guarantee Trustee Company Limited will provide 100% guarantee of the loan. The loan will be in the case of Scheduled Commercial Bank and Financial Institution as an additional working capital term loan facility and a non-fund based facility and in the case of NBFC as an additional term loan facility. The Guaranteed Loan Scheme will also be available to MSME / Business Enterprises, individual loan holders (if original loan was taken for their business) and Pradhan Mantri Mudra Yojana (PMMY).
ECLGS 2.0 will help troubled companies to maintain employment and meet liabilities
The ministry said that ECLGS 2.0 will provide great relief to the distressed sectors and help the companies to maintain employment and meet their liabilities. It will also benefit the MSME sector, which provides goods and services to qualified companies. The revised plan will contribute significantly in creating an environment conducive to economic recovery, security of employment and employment generation.