Under ECLGS, One Crore MSME Borrowers Given Rs 1.65 Lakh CR Support
- ByStartupStory | July 29, 2021
1.09 crore MSME (Micro, Small, & Medium Enterprises) borrowers have been provided with guarantee support of Rs 1.65 lakh crore under Emergency Credit Line Guarantee Scheme (ECLGS), Parliament was informed on Thursday. ECLGS is a part of the Aatmanirbhar Bharat Package 2020. It’s aim is to help MSMEs/small businesses meet their operational liabilities and resume businesses in view of the distress caused by the pandemic. Under the scheme, MLIs (Member Lending Institutions) are provided 100 percent guarantee against any losses suffered due to non-repayment of ECLGS funding by borrowers. The overall cap of admissible guarantee of ECLGS was raised from Rs 3 lakh crore to Rs 4.5 lakh crore on June 28, 2021.
‘Under the ECLGS, around 1.09 crore MSME borrowers have been provided with guarantee support amounting to Rs 1.65 lakh crore as on 02.07.2021,’ MSME Minister Narayan Rane said in a written reply to the Lok Sabha. In a separate reply, he said the government has announced that MSME dues should be cleared by government agencies and central public sector enterprises (CPSEs) within 45 days. ‘Since May 2020 and up to 26.07.2021, pending payments of Rs 55,863.30 crore have been made to MSMEs,’ he added.
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