Emergency Credit Line Guarantee Scheme (ECLGS) 1.0 & 2.0 extended upto 30.6.2021

New window ECLGS 3.0 for enterprises in Hospitality, Travel & Tourism, Leisure & Sporting sectors

In recognition of the continuing adverse impact of COVID-19 pandemic on certain service sectors, the Government has now extended the scope of Emergency Credit Line Guarantee Scheme (ECLGS) through introduction of ECLGS 3.0 to cover business enterprises in Hospitality, Travel & Tourism, Leisure & Sporting sectors which had, as on 29.02.2020, total credit outstanding not exceeding ₹ 500 crore and overdues, if any, were for 60 days or less, on that date i.e. 29^th Feb 2020.

ECLGS 3.0 would involve extension of credit of upto 40% of total credit outstanding across all lending institutions as on 29.02.2020. The tenor of loans granted under ECLGS 3.0 shall be 6 years including moratorium period of 2 years.

Further, the validity of ECLGS i.e. ECLGS 1.0, ECLGS 2.0 & ECLGS 3.0 have been extended upto 30.06.2021 or till guarantees for an amount of ₹ 3 lakh crore are issued. Last date of disbursement under the scheme has been extended to 30.09.2021.

The modifications introduced in the scheme, while providing an incentive to MLIs to enable availability of additional funding facility to the eligible beneficiaries will go a long way in contributing to economic revival, protecting jobs, and creating conducive environment for employment generation.

The revised operational guidelines in this regard shall be issued by National Credit Guarantee Trustee Company Ltd (NCGTC).

Emergency Credit Line Guarantee Scheme expansion adds a targeted guarantee window for hospitality and travel firms and extends disbursement timelines. ECLGS 3.0 creates a targeted credit guarantee window for Hospitality, Travel & Tourism, Leisure and Sporting enterprises that met pre-pandemic credit and overdue eligibility, permitting participating lenders to extend additional credit based on pre-pandemic outstanding balances. Loans under this window include an extended tenor with a moratorium component. The validity and disbursement timelines for ECLGS 1.0 and 2.0 have been extended, and revised operational guidelines will be issued by the designated guarantee trustee to govern implementation and participation.