The Finance Minister Nirmala Sitharaman announced the Credit Guarantee Support scheme (ECLGS 2.0) for stressed sectors in the second set of the economic stimulus package.

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In a press conference, the FM said that the Credit Guarantee Support scheme will be launched for the 26 stressed sectors identified by the Kamath Committee plus the health care sector. The scheme can be utilised for 100 percent guaranteed collateral-free additional credit at capped interest rates in these sectors.

The entities from these sectors with an outstanding credit of above Rs 50 crore and up to Rs 500 crore as of February 2, 2020, will be benefited in this scheme, the FM added. Earlier entities with outstanding up to Rs 50 crore were covered under the existing scheme.

FM further noted that there will be no upper ceiling on the annual turnover of the entities utilising the scheme.

The scheme will be available till March 31, 2020.

FM further stated that the tenor of the additional credit under this will be 5 years including a 1-year moratorium on principal repayment.

"The scheme will provide much-needed relief to the stressed sector by helping entities sustain employment and meet liabilities. This will also benefit the MSME sector which provides good and services to eligible entities," she added.

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(Edited by : Pranati Deva)

First Published:Nov 12, 2020 2:05 PM IST