Emergency Credit Scheme Timeline Extended till 31st March, 2022


Government has extended the time line of Emergency Credit Line Guarantee Scheme (ECLGS) till 31st March, 2022 or till guarantees for an amount of Rs 4.5 lakh crore are issued under the scheme, whichever is earlier. Further, the last date of disbursement under the scheme has also been extended to 30th June, 2022.

ECLGS since its launch, has extended relief to over 1.15 crore business entities. As on 24th September 2021, loans sanctioned have crossed Rs. 2.86 lakh crore under the Scheme and out of total guarantees issued, about 95% of the guarantees issued are for loans sanctioned to Micro, Small and Medium Enterprises.

After receiving demands from various stakeholders to extend the scheme, the government, with a view to support various businesses impacted by the COVID 19 pandemic, has extended the timeline with constituting the following modifications:

  • Existing borrowers under ECLGS 1.0 & 2.0 would be eligible for additional credit support of upto 10% of total credit outstanding as on 29th February, 2020 or 31st March, 2021, whichever is higher.
  • Businesses who have not availed assistance under ECLGS 1.0 or 2.0, can avail credit support of upto 30% of their credit outstanding as on 31st March, 2021.
  • Businesses in sectors specified under ECLGS 3.0, who have previously not availed, can avail credit support up to 40% of their credit outstanding as on 31st March, 2021, to the maximum of Rs 200 crore per borrower;
  • Incremental credit can be availed within these limits by existing ECLGS borrowers whose eligibility increased because of change in cut-off date to 31st March, 2021 from 29th February, 2020.
  • Accordingly, borrowers who have availed assistance under ECLGS and whose credit outstanding as on 31.03.2021 shall be eligible for incremental support within the cap stipulated under ECLGS 1.0,2.0 or 3.0.

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