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Govt may extend time limit for emergency credit line guarantee scheme

Since the launch of the scheme, industry bodies have pushed the government to relax conditions that accompany the scheme as they felt it restricts benefits to only a small cross section of companies

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Even as private sector banks and NBFCs started slow when the scheme was launched, they have now outpaced the state-owned banks in terms of loan sanctions

Somesh Jha Subhayan Chakraborty New Delhi

4 min read Last Updated : Sep 13 2020 | 11:25 PM IST

The government is considering to extend the time window for businesses to seek sovereign-guaranteed loans under the Emergency Credit Line Guarantee Scheme (ECLGS).

The last date for sanctioning loans up to Rs 3 trillion was October 31 under the ECLGS, which was implemented from May 23. However, data released by the finance ministry on Sunday showed that only Rs 1.63 trillion, about half of the targeted loan amount, was sanctioned till September 10.

“We will take a call (on extending the deadline of the scheme). We will also issue a clarification on the time window that banks will have to disburse the

Topics : loans Banks MSMEs

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