The government has extended the Emergency Credit Line Guarantee Scheme (ECLGS) for MSMEs by one month till November 30, 2020.

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The scheme has been extended till November 30 or till such time that an amount of Rs 3 lakh crore is sanctioned under the scheme, whichever is earlier, the Finance Ministry said in a statement said.

The step has been taken in view of the opening up of various sectors in the economy and the expected increase in demand during the ongoing festive season.

So far, the government has sanctioned Rs 2.03 lakh crore under the Scheme to 60.67 lakh borrowers while an amount of Rs 1.48 lakh crore has been disbursed.

Also Read: Credit guarantee for MSMEs: Why only half the kitty has been disbursed

An extension will provide a further opportunity to such borrowers who have not availed of the Scheme so far, the government said.

The scheme was launched as part of the Aatmanirbhar Bharat Abhiyan package announced by Finance Minister Nirmala Sitharaman in May and was valid till October-end.

(Edited by : Ankit Gohel)