Govt expands ECLGS coverage ahead of festive season, economic upturn

The ECLG scheme will now end on March 31, 2022 or till guarantees for Rs 4.5 trn are issued, whichever is earlier. However, loans under the scheme can be disbursed till June 30

In order to increase utilisation of the Emergency Credit Line Guarantee Scheme (ECLGS) and provide support to small businesses ahead of the festive season and economic upturn, the government has expanded the scheme by increasing the borrowing limit for availing loans.

The ECLG scheme has been extended by six months to March 31, 2022 or till guarantees for Rs 4.5 trillion are issued, whichever is earlier. However, loans under the scheme can be disbursed till June 30.

The pace of loan sanctions under the scheme has slowed, and advances of about Rs 2.86 trillion were sanctioned as on September 24.