Finance Minister Nirmala Sitharaman informed on Saturday that the scope of MSME Credit Guarantee Scheme has been increased to Rs 50 crore. The changes to the ECLGS have been made on the basis of the demands of labor organizations and the new definition of MSME approved by the Union Cabinet in June.
new Delhi. The government on Saturday extended the scope of the Rs 3 lakh crore MSME Credit Guarantee Scheme, making it eligible for units with outstanding loans up to Rs 50 crore. Till now, only the units with outstanding loans up to a maximum of Rs 25 crore were planned to give government guarantee on new loans. Also, the scope of the plan includes personal credits given to professionals such as physicians, lawyers and chartered accountants for business purposes.
Finance Minister gave information
The change in the Emergency Credit Guarantee Scheme (ECLGS) has been made based on the demands of labor organizations and the new definition of MSME approved by the Union Cabinet in June. Finance Minister Nirmala Sitharaman told the media about these changes that the ECLGS scheme will now also include personal credits given for business purposes, which are subject to the eligibility criteria of the scheme.
Financial Services Secretary Devashish Panda said, “We have also decided to cover the personal credit given to physicians, chartered accountants, etc. for business purposes under the scheme.” The process will be adopted so that the credits of these professionals running the business can be approved.
Steps taken to provide benefits to more and more companies
He said that to enable more and more companies to take advantage of the scheme, to increase the upper limit of outstanding credit on February 29 from Rs 25 crore to Rs 50 crore for eligibility under this scheme. It has been decided to do Rs. Panda,
part of the Rs 21 lakh crore package
, said that the maximum amount of Guaranteed Emergency Credit Line (GECL) under this scheme will also increase from the current Rs five crore to Rs 10 crore. This scheme is a part of the economic package of Rs 20.97 lakh crore announced by the government to deal with the outbreak of Kovid-19.
This scheme will also apply to these
This scheme will now be applicable to companies with annual turnover up to Rs 250 crore, while till now the figure was Rs 100 crore. Panda said that small number of small companies have been included under this scheme, so now there is a preparation to include big companies as well.
He said that the total limit of this scheme is three lakh crore rupees and the validity of the scheme is till October 2020. He said that the banks have sanctioned about Rs 90,000 crore of about 1.1 crore Kisan Credit Card (KCC) holders to help farmers in kharif sowing and related activities.