For Quick Alerts
For Daily Alerts

Extended Credit Line Guarantee For All Businesses And Not Just MSMEs:FM


In an address to the FICCI National Executive Committee members, the Finance Minister on Monday clarified that the Emergency Credit Facility announced as part of the Rs. 20 lakh crore package is applicable to all businesses and not just MSMEs. Further, she assured of extending all support to revive the economy battered by Covid 19. "We are committed to intervene if any of your members have a problem," FM Sitharaman said.

ECLGS For All Businesses And Not Just MSMEs:FM

Under the ECLGS, the government guarantees the credit line extended to businesses including MSMEs. As part the of the scheme amount extended as credit under ECLGS to a business/MSME will be up to 20 percent of total outstanding as on 29 February 2020.

contours on the scheme here.

The scheme is slated to run till October 31, 2020 or until Rs. 3 lakh crore is sanctioned. The scheme comes with a tenure of 4 years and a moratorium of 12 months for principal repayment.

Also there is a consideration being made for extending the timeline to avail 15% corporate tax rate on new investments. "I will see what can be done. We want industry to benefit from the 15 per cent corporate tax rate on new investments and I take your point for considering an extension in the deadline of March 31, 2023," she said.

On the question of liquidity, FM Sitharaman said, "We have fairly clearly addressed the issue of liquidity. There is definitely the availability of the liquidity. We will look into it if there are still issues."

Read more about: loan msme
Story first published: Tuesday, June 9, 2020, 7:01 [IST]
Company Search
Get Instant News Updates
Notification Settings X
Time Settings
Clear Notification X
Do you want to clear all the notifications from your inbox?
Settings X
We use cookies to ensure that we give you the best experience on our website. This includes cookies from third party social media websites and ad networks. Such third party cookies may track your use on Goodreturns sites for better rendering. Our partners use cookies to ensure we show you advertising that is relevant to you. If you continue without changing your settings, we'll assume that you are happy to receive all cookies on Goodreturns website. However, you can change your cookie settings at any time. Learn more