With one-third of the Rs. 3-Lakh-Crores loan ceiling remaining, the government has prolonged the validity of the Emergency Credit Line Guarantee Scheme (ECLGS) for another month, till November 30, or until the ceiling is exhausted, whichever comes first.

MSMEs and professionals such as doctors and chartered accountants, who are the intended beneficiaries of the program backed by an official guarantee on the business loans, will have extra time to use the facility due to the extension.


Highlight from Finance Ministry

Further Key Takeaways

  • In line with the new definition of MSMEs, enterprises with an annual turnover limit of up to Rs. 250 Crores are now eligible to participate in the plan, up from Rs. 100 Crores. Individuals who seek to take out business loans for professional purposes, such as doctors, chartered accountants, and lawyers, are now covered under the system.
  • Similarly, qualifying enterprises having outstanding loans of up to Rs. 50 Crores, rather than the previous limit of Rs. 25 Crores, can take advantage of the additional guaranteed loans. The current and next three fiscal years for the recent and next three budgetary years are to implement the ECLGS.
  • Banks and other financial institutions have interest rates capped at 9.25 percent, whereas NBFCs have their charges regulated at 14 percent. The loans offered under the plan have a four-year term with a one-year grace period on principal repayment.

Wrapping Up

Since business loans are becoming more widely available online, organizations may quickly select the one that best matches their needs. Finserv MARKETS offers business loans for various reasons, including meeting emergency capital demands and capital requirements over a longer period. These loans are available without collateral and come with a flexible payback period that allows you to build your business while repaying your debt. You can even take the aid of a business loan calculator online!

(Govt cited official dates, numeric data, and scheme names detected as plagiarism above)