More than 95% MSMEs benefitted under ECLGS

100% guarantee is provided to Member Lending Institutions (MLIs) in respect of the credit facility extended by them under the scheme to eligible borrowers, the Minister added.

As informed by the National Credit Guarantee Trustee Company Limited, the agency which operates the Emergency Credit Line Guarantee Scheme (ECLGS), a total of 117.87 lakh businesses have been supported with 100% guaranteed collateral-free loans under ECLGS of which about 95.21% were MSMEs, informed Union Minister of State for Finance Bhagwat Kisanrao Karad today.

The Minister stated that the ECLGS was launched in May 2020 as part of the Aatmanirbhar Bharat Abhiyaan to support eligible Micro, Small, and Medium Enterprises (MSMEs) and other eligible business enterprises in meeting their operational liabilities and restarting their businesses in the context of the disruption caused by the Covid-19 pandemic. It covered all the sectors of the economy.

100% guarantee is provided to Member Lending Institutions (MLIs) in respect of the credit facility extended by them under the scheme to eligible borrowers, the Minister added.