ECLGS Scheme is a very important scheme that is responsible for the upliftment of all those small or major businesses which are affected by the Covid crisis at a very large level in the last few years. While this scheme is also a very necessary scheme which was launched with the Atma Nirbhar Bharat Package under the provision of the central government. As this scheme is also very important for all those people who are recently struggling in their businesses which may or may not be affected by the Coronavirus in the last few years during the central government for their better support.
This particular scheme was launched in the year 2020 which can directly support those people who started their businesses on a different scale during the Covid crisis for a better future. While the full form of this launched scheme is Emergency Credit Line Guarantee Scheme (ECLGS) to simply enterprises in major hospitality and other related sectors as the pandemic disrupted these multiple sectors. While it is also true that multiple businesses are doomed because of the crisis under the control of the central government for better support.
ECLGS was simply rolled out and was originally launched in 2020 as part of the Centre’s Aatmanirbhar package in response to the Covid-19 crisis with the simple aim of providing huge support to all those businesses which do not get any sales because of various reasons including coronavirus. Recently, the government approved once again the proper and better enhancement in the ECLGS which is going up to the next year to support them more than anything in their small business. The scheme was launched as a part of the Atma Nirbhar Bharat package for the Micro, Small, and Medium Enterprises (MSME) borrowers to mitigate the distress caused by the COVID-19 pandemic.
Brief Description of Project
| Name of Scheme | ECLGS Scheme (Emergency Credit Line Guarantee Scheme) |
| Scheme benefits | To simply help major as well as small businesses who were affected by the Covid-19 pandemic. |
| Objective | To provide a 100% guarantee to Member leading institutions (MLI) in respect of eligible credit faculty extended by them under the ECLGS scheme. |
Table of Contents
- Major Aims and Objectives of the ECLGS Scheme
- Eligibility for Emergency Credit Line Guarantee Scheme (ECLGS)
- Key Features of the ECLGS Scheme
Major Aims and Objectives of the ECLGS Scheme
It is now very clear that this particular scheme is a very important scheme in terms of small business groups and companies which are not eligible of doing simple things due to the pandemic in the last few years. Because of this newly released scheme in the year 2020, it now became an even more useful scheme to simply do business on a very large scale which is once affected on a very huge scale. While from this scheme those businesses can get the credit product for which, a guarantee would be provided under the Scheme shall be named as Guaranteed Emergency Credit Line (GECL).
For the major objectives and aims of this particular scheme, you must know many things about the methods through which this scheme is going to work on a huge scale. As the main objective of this scheme is now certain and clear to everyone which is to simply provide a 100% guarantee to Member leading institutions (MLI) in respect of eligible credit faculty extended by them under the ECLGS scheme. While because of this objective everyone can now easily put up some work to properly understand the scheme as well as the different methods which are necessary to fulfil its goal.
The main aim is this particular ECLGS scheme is also very easy to understand as these things generally become the most important thing to consider in the first place for everyone. The aim of this scheme is to simply provide a decent amount of credit to some of the different sectors to manage them, especially those sectors which directly came under the Micro, Small, and Medium Enterprises (MSME) which is a government body. While Emergency Credit Line Guarantee Scheme (ECLGS) simply also enterprises them all in hospitality and some of the other related sectors which are pandemic disrupted on a large scale.
The timeline of this particular ECLGS scheme revolves around the year 2022- 2023 and with the proper support from the government. While the guarantee cover of this Emergency Credit Line Guarantee Scheme also came under the central government. In which the government has directly increased the amount by Rs 50,000 crore from Rs. 4.5 Lakh crore to Rs. 5 Lakh crore for these sectors which will be valid till 31st March 2023. So, due to these some important points of this scheme, including the MSMEs support can now provide a huge success to this program.
ECLGS Scheme 2023 Key Highlights
| Portal | ECLGS Scheme ( Emergency Credit Line Guarantee Scheme ) |
| Launched by | Central government scheme |
| Ministry Control | Ministry of Finance, Department of Financial Services (DFS) |
| Process | Online |
| Year | 2020 – 2023 |
| Objective | To provide a 100% guarantee to Member leading institutions (MLI) in respect of eligible credit faculty extended by them under the ECLGS scheme. |
| Benefits | To support small businesses which are totally affected by the Covid-19 pandemic on a large scale. |
| Beneficiary | Small Businesses and Companies affected by Covid-19 |
| Official Website | Click Here |
Eligibility for Emergency Credit Line Guarantee Scheme (ECLGS)
1. ECLGS 1.0
All different types of borrower accounts which are simply pertaining to the major Business Enterprises MSMEs as well as Loans to individuals for basic and specific business purposes with more than total credit outstanding (fund based only) across all of the lending institutions which were simply up to Rs. 50 crore as of the date of 29/02/2020 is eligible for this scheme. While to be eligible under ECLGS 1.0, the Borrower accounts should be less than or equal to 60 days which were past due as of 29th February 2020 as they should not have been classified as SMA 2 or NPA by any of the lenders as of 29th February 2020.
While the extension of this ECLGS Scheme also considered all those companies as well as those business ideas which can help our country in the future and which were simply affected by Covid-19 and the whole pandemic. As in the extension, all borrowers who have availed assistance under ECLGS 1.0 or new businesses and also who are eligible under ECLGS 1.0 based on the revised reference date of 31st March 2021
and who also meet the other terms of these guidelines now came under this scheme and are totally eligible.
2. ECLGS 2.0
In this segment of the scheme, all those Business Enterprises, as well as MSMEs in the 26 Covid-related, stressed sectors which are totally identified by one and only the Kamath Committee on Resolution Framework and the Healthcare sector have already taken part in this scheme, and are now can avail the loan for business purposes with total credit outstanding (fund based only) on a large scale across all lending institutions above Rs.50 crore and upto Rs.500 crore as on 29/02/2020 which are totally covered.
While for this segment of the scheme, those who are eligible under ECLGS 2.0, and who have borrower accounts should be less than or equal to 60 days past due as on February 29, 2020, which is simply considered as they should have not been classified as SMA 2 or NPA by any of the lenders as of 29th February 2020. As also the scheme also mandated borrower accounts to be less than or equal to 30 days past due as of 29th February 2020, that is, they should not have been classified as SMA 1, SMA 2, or NPA by any of the lenders as of 29th February 2020.
3. ECLGS 3.0
Through this segment of the ECLGS Scheme, those who already have all Business Enterprises or MSMEs in the Hospitality (hotels, restaurants, marriage halls, canteens, etc.) as well as Travel & Tourism, Leisure & Sporting, and Civil Aviation which also includes scheduled and non-scheduled airlines, chartered flight operators, air
ambulances, airports, and ground handling units sectors whose days past due are up to 60 days as of 29.02.2020 are eligible in participating in this particular scheme which is focussed on these major businesses and small companies.
While this segment of the ECLGS Scheme also covers the larger group in its extension pack which can now easily provide these facilities for all different types of borrowers who have properly availed assistance under ECLGS 3.0 or new businesses that are eligible under ECLGS 3.0 and are simply based on the revised reference date of the 31st March 2021 and those who meet the other terms of these guidelines are now also directly eligible for this particular ECLGS Scheme.
Key Features of the ECLGS Scheme
Any given particular scheme follows some of the major key features which are always considered as the major objectives or aims for that scheme. While this ECLGS Scheme also has some major key features which you must know before visiting the official site for participating in it. As apart from this particular scheme we must also know something about the NCGTC, which is a private limited company incorporated under the Companies Act, 1956 in 2014, established by the Department of Financial Services, Ministry of Finance, as a wholly owned company of the Government of India, to act as a common trustee company for multiple credit guarantee funds.
As this particular scheme revolves around the NCGTC, which can provide many guaranteed funds for anyone in the line of business. While this NCGTC was easily designed to share the lending risk of the lenders and in turn, facilitate access to finance for those prospective borrowers. While for the important key features of this Emergency Credit Line Guarantee Scheme (ECLGS scheme) are :
Key Features :
- Interest rates under the Scheme are capped at 9.25% for Banks and Financial Institutions (FIs), and 14% for NBFCs.
- For loans to hospitals/nursing homes/clinics/medical colleges/units engaged in the manufacturing of liquid oxygen, oxygen cylinders, etc. for setting up on-site oxygen generation plants, the rate of interest shall be capped at 7.5% p.a.
- For the purpose of ECLGS 1.0, Business Enterprises or MSMEs would include loans covered under Pradhan Mantri Mudra Yojana extended on or before 29/02/2020 and reported on the MUDRA portal.
Other Schemes
You can now easily get all details on different types of schemes that are directly launched by the central government or any other local government for educational purposes for free. As you can visit our official Website Masterpakistan.com for further details and you can now also comment on your request for the particular scheme you want from us.
| Other Schemes |
|---|
| Saksham Aganwadi & Poshan Scheme |
| SFURTI Scheme 2023 Big Updates for the Artist |
| Pradhan Mantri Kaushal Vikas Yojana (PMKVY) 2023 |
| NAMASTE Scheme 2023 |
| PM CARES for children scheme 2022 |
Conclusion
I hope after reading a lot of things about this ECLGS Scheme you will get a lot of knowledge and all your queries regarding this scheme are now get solved. But if you still have any queries regarding this scheme then without any hesitation ask us in the comment box given below. We gave hours of research and dedication to make this particular scheme so it is full of informational and educational types.
