Lok Sabha Question No. 2801 (UNSTARRED), answered on 2021-08-05
Subject: Emergency Credit Line Guarantee Scheme
Ministry: MICRO,SMALL AND MEDIUM ENTERPRISES
Asked by: Sunil Baburao Mendhe

## GOVERNMENT OF INDIA

## MINISTRY OF MICRO, SMALL AND MEDIUM ENTERPRISES

## LOK SABHA UNSTARRED QUESTION NO. 2801 TO BE ANSWERED ON 05.08.2021

## Emergency Credit Line Guarantee Scheme

## 2801.           SHRI SUNIL BABURAO MENDHE:

Will the Minister of MICRO, SMALL AND MEDIUM ENTERPRISES be pleased to state:

- (a) the salient features of Emergency Credit Line Guarantee Scheme (ECLGS);
- (b) the details of funds likely to be spent across the country under the said scheme;
- (c) the details of the targets fixed by the Government under the same;
- (d) the present status of the said scheme; and
- (e) the steps being taken by the Government to provide soft loans and for promotion of advanced technology for MSMEs especially in Maharashtra?

## ANSWER

## MINISTER OF MICRO, SMALL AND MEDIUM ENTERPRISES (SHRI NARAYAN RANE)

(a): Emergency Credit  Line  Guarantee  Scheme  (ECLGS)  was  announced  as  part  of  the Atma  Nirbhar  Bharat  Package  in  2020  with  the  objective  to  help  businesses  including MSMEs to meet their operational liabilities  and  resume  businesses  in  view  of  the  distress caused  by  the  COVID-19  crisis,  by  providing  Member  Lending  Institutions  (MLIs),  100 percent guarantee against any losses suffered by them due to non-repayment of the ECLGS funding by borrowers.  The eligibility criteria for availing credit under ECLGS are:

-  For ECLGS 1.0; MSME units, Business Enterprises, Mudra Borrower and individual loans for business purpose having loan outstanding upto Rs.50 crore and days past due upto 60 days as on 29.02.2020.
-  For  ECLGS  2.0;  Borrower  belonging  to  26  stressed  sectors  identified  by  Kamath Committee & Healthcare sector  having  loan  outstanding  above  Rs.50  crore  and  upto Rs.500 crore and days past due upto 60 days as on 29.02.2020.
-  For  ECLGS  3.0;  Borrower  belonging  to  Hospitality,  Travel  &  Tourism,  Leisure  & Sporting and Civil Aviation sector having days past due upto 60 days as on 29.02.2020.
-  For  ECLGS  4.0;  Existing  Hospitals/Nursing  Homes/Clinics/Medical  Colleges/units engaged in manufacturing of liquid oxygen, oxygen cylinders etc. having credit facility with a lending institution with days past due upto 90 days as on March 31, 2021.

(b) & (c): The overall ceiling initially announced for ECLGS was Rs 3 lakh crore which was subsequently enhanced to Rs 4.5 lakh  crore. However, ECLGS being a demand driven scheme,  sanctions/disbursements  are  made  by  lending  institutions  based  on  assessment  of borrower's requirement and their eligibility.

(d): ECLGS  is  under  the  operational  domain  of  Ministry  of  Finance,  Department  of Financial Services (DFS). As informed by DFS, as on 2.07.2021 an amount of Rs.2.73 lakh crore have been sanctioned under the scheme of which an amount of Rs.2.14 lakh crore has been disbursed. Total 1.14 crore borrowers have been issued guarantee under the scheme.

(e): In  order  to  ensure  easy  and  softer  repayment  terms  on  the  credit  extended  to  the MSME sector, Government has capped the interest rate under ECLGS scheme at 9.25 percent for Banks and Financial Institutions and 14 percent for Non-Banking Financial Institutions. This  scheme  also  offers  a  one  year  moratorium  on  payment  of  principle  component.    In addition to this, the other scheme announced under Atma Nirbhar Bharat package i.e. 'Credit Guarantee  Scheme  for  Subordinate  Debt'  also  has  moratorium  clause  of  7  years  on  the payment of principle component with the overall all repayment period of 10 years.  Ministry MSME is implementing various schemes and programmes to provide access to technology upgradation. These schemes include Technology Upgradation Component of Credit Linked Capital  Subsidy  Scheme  and  Technology  Upgradation  Scheme  (CLCS-TUS),  Micro  and Small  Enterprise  -  Cluster  Development  Programme  (MSE-CDP),  MSME  Technology Centres (MSME-TCs), Technology Centre Systems Programme (TCSP) etc. These schemes are implemented across the country including the state of Maharashtra.

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