Emergency Credit Line Guarantee Scheme (ECLGS) 3.0
Context: Government has extended the scope of Emergency Credit Line Guarantee Scheme (ECLGS) through introduction of ECLGS 3.0 to cover business enterprises in Hospitality, Travel & Tourism, Leisure & Sporting sectors.
- It would involve extension of credit of upto 40% of total credit outstanding across all lending institutions as on 29.02.2020.
- The tenor of loans granted under ECLGS 3.0 shall be 6 years including moratorium period of 2 years.
- Validity of ECLGS i.e. ECLGS 1.0, ECLGS 2.0 & ECLGS 3.0 have been extended upto 30.06.2021 or till guarantees for an amount of Rs. 3 lakh crore are issued.
- The modifications will enable availability of additional funding facility to the eligible beneficiaries will go a long way in contributing to economic revival, protecting jobs, and creating conducive environment for employment generation.
- It was introduced by the government to mitigate the economic distress faced by micro, small and medium enterprises (MSMEs) because of the COVID-19 pandemic by providing them additional funding of up to Rs 3 lakh crore in the form of a fully guaranteed emergency credit