Expanded Emergency Line of Credit Guarantee Program (ECLGS) – ECLGS 4.0 for On-Site Oxygen Generation, Wider ECLGS 3.0 Coverage, and Extended Term for ECLGS 1.0 | Odisha News | Latest Odisha News

New Delhi: Due to the disruption caused by the second wave of the COVID 19 pandemic to businesses in various sectors of the economy, the government has further expanded the scope of the Emergency Lines of Credit Guarantee Program as follows:

(I) ECGLS 4.0:100% warranty coverage atlends up to Rs. 2 crore to hospitals / nursing homes / clinics / medical universities for setting up on-site oxygen generation plants, interest rate capped at 7.5%;

(ii) Borrowers eligible for restructuring according to the RBI guidelines of 05 May 2021 and had received loans under ECLGS 1.0 with an aggregate term of four years including repayment of interest only for the first 12 months with repayment of principal and interest within 36 months thereafter now be able to benefit from a five-year term for their ECLGS loan i.e. repayment of interest only during the first 24 months with repayment of principal and interest in the following 36 months;

(iii) Further assistance from ECGLS up to 10% of the outstanding amount as at February 29, 2020 to borrowers covered by ECLGS 1.0, in parallel with a restructuring according to the RBI directives of May 05, 2021;

(iv) Current ceiling of Rs. 500 Cr. of the outstanding loan for eligibility for ECGLS 3.0 to be deleted, subject to maximum additional ECLGS assistance to each borrower being limited to 40% or 200 crore rupees, whichever is lower;

(v) The civil aviation sector will be eligible for ECGLS 3.0

(vi) ECLGS validity extended until 30.09.2021 or until guarantees in the amount of Rs. 3 lakh crore are issued..

Changes to the ECLGS would enhance the utility and impact of the ECLGS by providing additional support to MSMEs, preserving livelihoods and helping a seamless resumption of business activity. These changes will further facilitate the flow of institutional credit on reasonable terms.

Detailed operational guidelines in this regard are published separately by the National Credit Guarantee Trustee Company (NCGTC).

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