Emergency credit line guarantee scheme

The government of India has expanded its Emergency Credit Line Guarantee Scheme (ECLGS) to cover loans given to larger firms as well as to self-employed people and professionals who have taken loans for business purposes.

Daily Current Affairs Quiz 2020

Key-Points

The Emergency Credit Line Guarantee Scheme was rolled out in May as part of the Centre’s Aatmanirbhar package in response to the COVID-19 crisis.

It has a corpus of ₹41,600 crore and provides fully guaranteed additional funding of up to ₹3 lakh crore. Eligible MSMEs had to have an annual turnover up to ₹100 crore, with outstanding loans of up to ₹25 crore as on February 29, 2020.

The scheme has been expanded to cover enterprises with a turnover up to ₹250 crore, with outstanding loans up to ₹50 crore.

Individual beneficiaries include both professionals such as doctors, lawyers and chartered accountants, as well as self-employed people such as vendors or taxi drivers.