Emergency line of credit guarantee system to also include individuals

New Delhi: Individual loans for business purposes will now also come under the emergency credit lines guarantee program that the government launched to provide credit support to small and medium-sized businesses.

In addition, the upper limit on outstanding loans under the program has been increased from Rs 25 crore to Rs 50 crore and the turnover limit has been increased from Rs 100 crore to Rs 250 crore.

On May 21, Cabinet approved additional funding of up to Rs 3 lakh crore at a concessional rate of 9.25% through the Emergency Credit Line Guarantee Program (ECLGS) for the credit sector. MSME.

So far Rs 1.36 lakh crore has been sanctioned by banks under ECLGS, while disbursements of over Rs 87,227 crore have taken place so far.

“We expect coverage of almost Rs 1 lakh crore with the extension of the program to individuals,” Finance Minister Nirmala Sitharaman told a group of reporters.

ET Now learns that the recent changes were made because the NBFC requested the inclusion of personal loans under the government-sponsored COVID emergency credit program, as many loans have been taken out by small businesses that were exercised on behalf of individuals and not under corporate structures.