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Credit Boost for Businesses: Rs 2.55 Lakh Crore Unlocked
6 May
Summary
- Union Cabinet approved Rs 2.55 lakh crore under ECLGS 5.0.
- Scheme offers 100% credit cover for MSMEs, 90% for others.
- Airlines included, with Rs 5,000 crore allocated.
The Union Cabinet has given its approval for an enhanced credit flow target of Rs 2.55 lakh crore under the Emergency Credit Line Guarantee Scheme (ECLGS) 5.0. This significant financial injection aims to bolster businesses facing short-term liquidity challenges. The scheme is structured to provide robust support, offering a full 100% credit guarantee cover for Micro, Small, and Medium Enterprises (MSMEs).
Furthermore, non-MSME entities, notably including the airline sector, will receive a 90% credit guarantee cover. A specific allocation of Rs 5,000 crore has been designated for airlines to help them navigate current economic pressures. The National Credit Guarantee Trustee Company Limited (NCGTC) will extend these guarantees to Member Lending Institutions against potential defaults.
