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Emergency Credit Line Guarantee Scheme (ECLGS):
News:
- The Finance Ministry said public sector banks have disbursed ₹16,031.39 crore till June 12, under the Rs. 3-lakh crore Emergency Credit Line Guarantee Scheme (ECLGS) for the MSME sector.
- The scheme is the biggest fiscal component of the ₹20-lakh crore Atmanirbhar Bharat Abhiyan package.
More about Emergency Credit Line Guarantee Scheme (ECLGS):
- ECLGS has been formulated as a specific response to the unprecedented situation caused by COVID-19 and the consequent lockdown.
- Aim: Mitigating the economic distress being faced by MSMEs by providing them additional funding of up to Rs. 3 lakh crore in the form of a fully guaranteed emergency credit line.
- Objective: To provide an incentive to Member Lending Institutions (MLIs), i.e., Banks, Financial Institutions (FIs) and Non-Banking Financial Companies (NBFCs) to increase access to, and enable availability of additional funding facility to MSME borrowers.
- The scheme provides 100% guarantee for any losses suffered by them due to non-repayment of the GECL funding by borrowers.