New Delhi. The government on Saturday extended the scope of the Rs 3 lakh crore MSME loan guarantee scheme, making it eligible for units with outstanding loans up to Rs 50 crore. Till now, only the units with outstanding loans up to a maximum of Rs 25 crore were planned to give government guarantee on new loans. Also, the scope of the plan includes personal loans given to professionals such as physicians, lawyers and chartered accountants for business purposes. The change in the Emergency Credit Guarantee Scheme (ECLGS) has been made on the basis of the demands of labor organizations and the new concept of MSMEs approved by the Union Cabinet in June. Finance Minister Nirmala Sitharaman told the media about these changes that the ECLGS scheme will now also include personal loans granted for business purposes, which are subject to the eligibility criteria of the scheme.
Financial Services Secretary Devashish Panda said, "We have also decided to cover personal loans given to physicians, chartered accountants, etc. for business purposes under the scheme." The process will be adopted so that loans of these professionals running the business can be approved. He said that in order to enable more and more companies to take advantage of the scheme, it has been decided to increase the upper limit of outstanding loans on February 29 from Rs 25 crore to Rs 50 crore for eligibility under this scheme.
Panda informed that the maximum amount of Guaranteed Emergency Credit Line (GECL) under this scheme will also increase from the current Rs five crore to Rs 10 crore. The plan is a part of the Rs 20.97 lakh crore economic package announced by the government to combat the outbreak of Kovid-19. This scheme will now be applicable to companies with annual turnover up to Rs 250 crore, while till now the figure was Rs 100 crore. Panda said that a substantial number of small companies have been included under this scheme, so now there is a readiness to include large companies as well. He said that the total limit of this scheme is three lakh crores and the validity of the scheme is till October 2020. He informed that the banks have sanctioned about Rs 90,000 crore of about 1.1 crore Kisan Credit Card (KCC) holders to help the farmers in kharif sowing and related activities.