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ECLGS tenure extension will benefit textile companies

Jun 07, 2021
ECLGS tenure extension will benefit textile companies

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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