Tag Archives: Emergency Credit Line Guarantee Scheme 2.0

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.

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