[INDIAN ECONOMIC NEWS] Good morning everyone I am  Rumi Dhar from Kama Group.
Here I have important INDIAN economic news to share with you which is as mentioned
below.

The government said on Wednesday it has expanded the scope of its flagship guaranteed loan
scheme and extended its validity by a year through March 2023, in sync with the Budget
announcements.

The finance ministry has also extended relief under the Rs 5-trillion emergency credit line
guarantee scheme (ECLGS) to hospitality, civil aviation and related enterprises. The scheme
was initially launched to help MSMEs but was later expanded to benefit bigger firms in select
sectors as well as professionals hit by the pandemic.

As per the new norms, companies in the hospitality, civial aviation, travel and tourism industry
can now borrow up to 50% of their highest fund-based credit outstanding, as against 40%
earlier, according to a finance ministry statement. Nevertheless, the borrowing by a single
MSME from the hospitality, travel and tourism industry is still capped at Rs 200 crore.
However, the borrowing limit for an aviation player has been raised to Rs 400 crore from
Rs 200 crore earlier.

The ministry said, to reduce the cost of accessing non-fund-based credit, bank guarantees,
letters of credit and other non-fund based facilities sanctioned under the latest version of the
scheme (ECLGS 3.0) will be issued without any cash margin. The fee or commission will be
capped at 0.5% per annum.

The extension of the ECLGS validity and the widening of its scope will benefit a wider pool of
businesses that haven’t been able to tap the scheme yet, as economic recovery has been dealt
a fresh blow by the Omicron spread in January and the current Ukraine crisis, according to
banking sources.




Read more at: https://www.financialexpress.com/economy/emergency-credit-line-guarantee-scheme-aviation-hospitality-to-gain-from-msme-credit-extension/2476867/



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