EMERGENCY CREDIT LINE GUARANTEE SCHEME

Aug. 9, 2020

The Centre has expanded its credit guarantee scheme for micro, small and medium enterprises (MSMEs) to cover loans given to larger firms, as well as to self-employed people and professionals who have taken loans for business purposes.

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The Emergency Credit Line Guarantee Scheme was rolled out in May as part of the Centre’s Aatmanirbhar package in response to the COVID-19 crisis.
It has a corpus of ₹41,600 crore and provides fully guaranteed additional funding of up to ₹3 lakh crore. Eligible MSMEs had to have an annual turnover up to ₹100 crore, with outstanding loans of up to ₹25 crore as on February 29, 2020.
The scheme has been expanded to cover enterprises with a turnover up to ₹250 crore, with outstanding loans up to ₹50 crore.
Individual beneficiaries include both professionals such as doctors, lawyers and chartered accountants, as well as self-employed people such as vendors or taxi drivers.

Source : The Hindu