Benefits of Emergency Credit Line Guarantee Scheme
- Existing borrowers can receive additional loans from banks without having to put up additional collateral.
- MSMEs affected by sporadic lockdowns receive funding to remain operational.
- As the facility is completely guaranteed by the government against credit losses; sanctions and disbursements are made significantly more quickly.
- Businesses in the hospitality, travel, and tourism, as well as the leisure and sporting industries, are anticipated to profit from the scheme.
Emergency Credit Line Guarantee Scheme
The Emergency Credit Line Guarantee Scheme (ECLGS) was approved by the Union Cabinet under Prime Minister Narendra Modi’s leadership in May 2020. The program was introduced as a component of the Atma Nirbhar Bharat package for Micro, Small, and Medium Enterprises (MSME) borrowers to lessen the hardship brought on by the COVID-19 pandemic. The Scheme is anticipated to benefit the economy and aid in its recovery by assisting MSMEs to continue operating in the face of the current unusual scenario.