The Indian Banks Association has told the government that due to the third wave of COVID-19, MSME companies have not yet fully recovered from the cash crunch. In such a situation, IBA has demanded to increase the time limit of ECLGS. Watch full video-
IBA has demanded extension of ECLGS deadline.
The Indian Banks Association has told the government that due to the third wave of COVID-19, MSME companies (MSME) have not yet fully recovered from the cash crunch. In such IBA has ECLGS Requested for extension of time limit. The Indian Banks Association (IBA) has suggested to the government to extend the Guaranteed Loan Scheme till March 2023. Also, 10 percent additional amount should be provided to the eligible borrowers under ECLGS. After all, what is the Emergency Credit Line Guarantee Scheme ie ECLGS. You will remember that the lockdown in the first wave of Corona (LockdownDue to which the country’s economy had suffered a lot. At that time, the Modi government had announced a relief package of Rs 20 lakh crore to support the economy. It was named Self-Reliant India Package.
Let’s know about the plan…
The only scheme of this package is the Emergency Credit Line Scheme. This scheme was introduced in May 2020. Under this, the government had announced to distribute an unsecured loan of three lakh crore rupees to MSMEs affected by COVID-19 and lockdown.
There is no need to give any guarantee to the micro, small and medium enterprises for this loan from banks and financial institutions. The government later increased this amount to Rs 4.5 lakh crore. With this loan, companies can meet business operating costs.
The Indian Banks Association has told the government that due to the third wave of COVID-19, MSME companies have not yet fully recovered from the cash crunch. In such a situation, IBA has demanded to increase the time limit of ECLGS. Watch full video-@sandeepgrover09 @anshuman1tiwari pic.twitter.com/meesayOmU7
— Money9 (@Money9Live) January 19, 2022
In September 2021, the government had extended the deadline for this scheme to March 2022, which has now been sought by the IBA for one more year.
IBA says that MSMEs are still not able to recover from the crisis due to the third wave. Therefore, the government should continue this scheme now.
Not only this, IBA has also demanded from the government to ease the conditions of this scheme, so that more and more MSME units can take advantage of it.
According to a report, out of Rs 4.5 lakh crore, so far only term loans worth Rs 3.10 lakh crore have been disbursed under this scheme.
Pawan Jaiswal, Money9
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