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In News
- The Department of Financial Services (DFS) has recently modified the Emergency Credit Line Guarantee Scheme (ECLGS) for the aviation sector, raising the scheme’s cheaper loan limit to 1,500 crore from 400 crore to help the sector tide over cash-flow problems.
- The move is aimed at giving the necessary collateral-free liquidity at reasonable interest rates to the aviation industry.
What Is Emergency Credit Line Guarantee Scheme (ECLGS)?
- The ECLGS was launched as part of the Rs 20 lakh crore Covid-19 relief package called the Aatmanirbhar Bharat Abhiyan.
- The scheme aimed to provide Rs 3 lakh crore worth of collateral-free, government-guaranteed loans to micro, small and medium enterprises (MSMEs) across India to mitigate the distress caused by the coronavirus-induced lockdown.
- The loans under ECLGS provide a 100 percent guarantee to lending institutions in respect of the credit facility extended by them under the scheme to eligible borrowers.
ECLGS 1.0
ECLGS 2.0
ECLGS 3.0
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Source: LM
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