Tag Archives: ECLGS

Thanking the government for considering its appeal for earmarking an ECLGS for the sector, Gurbaxish Singh Kohli, VP, Federation of Hotel & Restaurant Associations of India (FHRAI), said, “The decision to approve an additional ECLGS worth Rs.50,000 Cr specifically for hospitality and tourism sectors is welcome. The additional line of credit was much needed by the hospitality sector which is still grappling with massive debts and is simultaneously trying to keep business running. Several hospitality establishments cannot sustain operations without sufficient liquidity, but the extended ECLGS could help businesses buy some more time to keep the wheels in motion.”

Tourism Minister G Kishan Reddy has said that 31 MSME units were sanctioned Rs234.7 crore during 2021 by way of sanctioned Emergency Credit Line Guarantee Scheme (ECLGS) to MSME by Tourism Finance Corporation India (TFCI) under Atmanirbhar Bharat package announced on May 13 this year. Apart from that, loan of Rs1541.65 crore was also sanctioned to 47 borrowers by TFCI during 2018-19 to 2019-20, he said.

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 29th Feb, and they would be able to borrow up to 20% of their outstanding dues as on 29th 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.