Government expands emergency credit line guarantee scheme
ECLGS 4.0: Under ECLGS 4.0, 100% guarantee cover will be given on loans up to Rs 2 crore given to hospitals, nursing homes, clinics, medical colleges for setting up on-site oxygen generation plants.
New Delhi. In view of the economic loss caused by the second wave of Corona, the Finance Ministry has made a big announcement on Sunday. Finance Minister Nirmala Sitharaman has expanded the Emergency Credit Line Guarantee Scheme (ECLGS). Under ECLGS 4.0, 100% guarantee cover will be given on loans up to Rs 2 crore given to hospitals, nursing homes, clinics, medical colleges for setting up on-site oxygen generation plants. Let us inform that an interest rate of 7.5 percent has been fixed on this.
Apart from this, the government has also decided to extend the period of ECLGS 1.0 scheme. It has been decided to increase the validity of this scheme till 30 September 2021 or till the loan of 3 lakh crore is not disbursed. Under this scheme, loan disbursement will have to be done by December 31, 2021.
100% guarantee cover to loans up to Rs 2 crore to hospitals/nursing homes/clinics/medical colleges for setting up on-site Oxygen generation plants, interest rate capped at 7.5% under Emergency Credit Line Guarantee Scheme (ECLGS) 4.0: Ministry of Finance pic.twitter.com/ln73Jxzeii
– ANI (@ANI) May 30, 2021
According to a statement issued by the ministry, those who have taken a loan under ‘ECLGS 1.0’ will now get five years to repay the loan instead of four years. That is, they will now have to pay interest for 24 months and the principal and interest will have to be paid in total 36 months.Also read: Government made a big announcement! Those with salary up to 21 thousand will get pension, these people will benefit from ESIC’s family pension scheme
Know what is ECLGS
The Emergency Credit Line Guarantee Scheme (ECLGS) was launched by Finance Minister Nirmala Sitharaman in May 2020 to mitigate the crisis caused by the coronavirus pandemic and the lockdown. The objective of this scheme is to provide fully guaranteed and guarantee free loans to Micro, Small and Medium Enterprises (MSMEs), business enterprises, and borrowers of Mudra Yojana.