To help small businesses tide over the prevailing economic crisis generated by the explosive growth in cases of covid-19 infections, the finance ministry on Sunday decided to enlarge the scope of the Emergency Credit Line Guarantee Scheme (ECLGS). Business owners, especially the ones with limited capacity, have been urging the government to extend the scheme as the state-wise lockdowns have adversely impacted their businesses and limited their ability to repay loans taken from banks. repayment of interest only for the first 24 months with repayment of principal and interest in 36 months thereafter. “The modifications in ECLGS would enhance the utility and impact of ECLGS by providing additional support to MSMEs, safeguarding livelihoods, and helping in a seamless resumption of business activity. These changes will further facilitate the flow of institutional credit at reasonable terms," the finance ministry said in a statement.

Source: Mint May 30, 2021 07:41 UTC