ECLGS tenure extension will benefit textile companies
The government extended loan for four years with repayment of only interest in the first 12 months under Emergency Credit Line Guarantee Scheme (ECLGS).
New Delhi
The
extension of tenure of loan availed under Emergency Credit Line Guarantee
Scheme (ECLGS) has come as a major relief for the textile industry. The
industry was struggling to return to normalcy with demand in both the domestic
and export market hit badly due to prevailing Covid conditions.
Previously,
under ECLGS, the government extended loan for four years with repayment of only
interest in the first 12 months. The government has now extended the tenure of
this loan to five years. With this, borrowers have to repay only interest in
the first 24 months and payback the principal and interest in the following 36
months.
Manoj
Patodia, Chairman, the Cotton Textiles Export Promotion Council, said that the increase in the
period for repayment of loans to 5 years has come as a huge relief for MSMEs
who are struggling hard to get back to business after the second wave of Covid
pandemic.
The
government has also extended an additional ECLGS assistance of up to 10 per
cent of the outstanding as of February 29, 2020 to borrowers.
Source: The Hindu Business Line
Image source: Google Images
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