In a major move expected to offer relief to the MSME sector burdened by the impact of the US-Israel war, the government on Tuesday announced an Emergency Credit Line Guarantee Scheme (ECLGS) with an outlay of Rs 18,100 crore.
The scheme aims to provide credit guarantee coverage of 100% for MSMEs and 90% for non-MSMEs as well as the airline sector, to Member Lending Institutions (MLIs) by National Credit Guarantee Trustee Company Limited (NCGTC) for the amount in default under the additional credit facility extended to eligible borrowers to tide over any short-term liquidity mismatches in view of the West Asia Crisis, as per a PIB release. It is also expected to help provide an additional credit flow of Rs 2.55 lakh crore, including Rs 5,000 crore for airlines.
