ECLGS 3.0 for travel, tourism and hospitality industry would involve extension of credit of upto 40% of total credit outstanding across all lending institutions as on February 29, 2020. The tenor of loans granted under ECLGS 3.0 shall be 6 years including moratorium period of 2 years
The government has extended the Emergency Credit Line Guarantee Scheme (ECLGS) by three months up to June 30, which has come as a big relief for the travel, tourism and hospitality industry. The industry has been severely damaged by the adverse effect of COVID-19 pandemic, and this move by the government will surely give a sigh of relief to the sector.
A statement released by the Finance Ministry said, “ECLGS 3.0 would involve extension of credit of upto 40% of total credit outstanding across all lending institutions as on February 29, 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 June 30, 2021 or till guarantees for an amount of INR 3 lakh crore are issued. Last date of disbursement under the scheme has been extended to September 30, 2021.”
It also said that 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 a conducive environment for employment generation. The revised operational guidelines in this regard shall be issued by the National Credit Guarantee Trustee Company Ltd (NCGTC).