“Emergency Credit Line Guarantee Scheme” (ECLGS)
According to a report by State Bank of India (SBI), ECLGS (Emergency Credit Line Guarantee Scheme) has helped in saving about 13.5 lakh units and 1.5 crore jobs in the Micro, Small and Medium Enterprises (MSME) sector.
ECLGS was announced as part of the self-reliant India package. It aims to provide fully guaranteed and collateral free additional loans to MSMEs, business enterprises, personal loan borrowers for business purposes and MUDRA borrowers.
The government has expanded ECLGS to cover many industries. Four expanded versions of it have come out so far.
100% guarantee coverage is provided to member lending institutions (Banks, Financial Institutions and Non-Banking Financial Companies) on the emergency credit line guaranteed under ECLGS.
Source – The Hindu