In order to support MSMEs engaged in travel, tourism and hospitality sectors to overcome the impact of the COVID-19 pandemic, the Finance Ministry has expanded the scope of the Rs 5 lakh-crore Emergency Credit Line Guarantee Scheme (ECLGS).
The coverage, scope and extent of benefits under ECLGS 3.0 pertaining to hospitality, travel, tourism and civil aviation sectors have been expanded. As per the latest modification, new borrowers, in the sectors covered under ECLGS 3.0, who have borrowed between March 31, 2021, and January 31, 2022, will now be eligible to avail the emergency credit facilities.
The ministry also noted that the credit limit for eligible borrowers has been increased to 50 per cent of their fund-based credit outstanding from 40 per cent earlier. Individuals and proprietary concerns in the sectors covered under ECLGS 3.0 can also now avail of emergency credit facilities.
