Centre raises credit guarantee limit for airlines sector

October 8, 2022

Centre raises credit guarantee limit for airlines sector: The Department of Financial Services (DFS) has modified the Emergency Credit Line Guarantee Scheme (ECLGS) for the aviation sector.

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The department has raised the scheme’s cheaper loan limit to ₹1,500 crore from ₹400 crore.

Aim: To help the sector tide over cash-flow problems.

As per the modified ECLGS, an airline would be eligible for 100% of its fund- based or non-fund-based loan outstanding or ₹1,500 crore, whichever is lower.