FM’s relief for tourism, aviation & hotels with ECLGS

Finance Minister, Nirmala Sitharaman has announced Emergency Credit Line Guarantee Scheme 2.0 (ECLGS) for the 26 stressed sectors identified by Kamath Committee, which include tourism, aviation, hotels & restaurants. Under ECLGS 2.0, banks would be able to provide collateral-free, fully guaranteed loans to borrowers on capped interest rates. It supports companies with outstanding dues of Rs 50-500 crore as on 29^th Feb, and they would be able to borrow up to 20% of their outstanding dues as on 29^th Feb, with a loan tenor set at 5 years. Also there will be a one-year moratorium on principal repayment. The scheme will be available till March 31, 2020.