Government loan scheme for oxygen plants, banks will give Kovid loan

To accelerate the economy amid the second Kovid wave, the government on Sunday expanded the scope of the Emergency Credit Line Guarantee Scheme (ECLGS) to provide greater relief to small businesses, bring the aviation sector under its ambit. Concessional loan facility up to Rs 2 crore in loans for health facilities for setting up oxygen production plants. However, the total size of ECLGS has been kept at Rs 3 lakh crore, of which around 45,000 crore is yet to be approved.

 Those who have already availed loan under this scheme can get additional assistance of up to 10 per cent of the outstanding amount till February 29, 2020. Also, public sector banks have announced that they are joining hands to provide standardized loans to healthcare facilities and individuals. Under the Kovid loan book proposed by RBI and ECLGS. Under this initiative,

The Union Finance Ministry has also removed the current limit of Rs 500 crore of outstanding loans for eligibility under ECLGS, which is limited to the maximum additional assistance of 40 percent or Rs 200 crore, whichever is lower, to each borrower. Bankers said that since there is a loan limit of Rs 200 crore per company, the new scheme should be able to accommodate a large number of stressed entities.

 To help companies cope with the liquidity crunch resulting from Kovid’s restrictions under the ECLGS scheme, banks provide additional loans to existing borrowers without additional collateral. To encourage banks, these loans are fully guaranteed by the government against loan losses. The scope of the scheme has already been expanded three times. This scheme will be valid till September 2021 or till the expiry of the guarantee amount of Rs 3 lakh crore, While disbursement is allowed till December 2021. Welcoming the latest move, FICCI Chairman Uday Shankar raised the need to increase the limit to Rs 3 lakh crore. . “The new scheme ECLGS 4.0 provides financial assistance to the critical healthcare sector,