In a major development, the Central Government today extended the Emergency Credit Line Guarantee Scheme (ECLGS) till November 30th, 2020, or till such time that an amount of Rs 3 lakh crore is sanctioned under the Scheme, whichever is earlier.
This move is initiated in a bid to open several prospects in sync with various sectors in the economy and the expected inflate in demand during the ongoing festive season, as per the Ministry of Finance.
The Union Ministry of Finance further stated, “This extension will provide a further opportunity to such borrowers who have not availed of the Scheme so far, to obtain credit under the Scheme.”
The ECLGS scheme announced by the centre in a bid to offer financial support to small and medium borrowers and help them come out of financial difficulties created by the Covid-19 pandemic.
According to a communiqué sent by FIDC received by to The Banking & Finance Post, Several lakhs of MSMEs, self-employed persons and others have been able to resume their commercial activity and recover at least partially from the effects of lockdown.