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Over 1.09 cr MSMEs get loan guarantee under ECLGS: Indian ministry

20 Jul '21

1 min read

Pic: Shutterstock

Guarantees have been issued for loans granted to over 1.09 crore Indian micro, small and medium enterprises (MSMEs) under the Emergency Credit Line Guarantee Scheme (ECLGS), which is part of the operational domain of ministry of finance, department of financial services (DFS). Around ₹2.73 lakh crore has been sanctioned of which ₹2.14 lakh crore has been disbursed.

The scheme was designed to support existing borrowers meet the liquidity crisis due to COVID-19 pandemic. Ministry of MSME has launched Credit Guarantee Scheme for Subordinate Debt (CGSSD) to extend financial assistance to stressed MSMEs including NPA accounts, minister of MSME Narayan Rane said in a written reply to the Rajya Sabha.

ECLGS being a demand driven scheme, sanctions/disbursements are made by lending institutions based on assessment of borrower’s requirement and their eligibility.

The ECLGS 1.0 is for MSME units, business enterprises, mudra borrower and individual loans for business purpose having loan outstanding up to ₹50 crore and days past due up to 60 days as on Feb 02, 2020.

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