Sign In
Learn bits
Schemes & Policies
Mahesh

07/10/22 07:17 AM IST

Centre raises credit guarantee limit to help stressed airlines

In News 
  • The Department of Financial Services (DFS) has modified the Emergency Credit Line Guarantee Scheme (ECLGS) for the aviation sector, raising the scheme’s cheaper loan limit to ₹1,500 crore from ₹400 crore to help the sector tide over cash-flow problems.
Changes 
  • Raising the scheme’s cheaper loan limit to ₹1,500 crores from ₹400 crore
  • The airline would be eligible for 100% of its fund-based or non-fund-based loan outstanding or ₹1,500 crores.
  • It was earlier extended beyond March 2022 to March 2023.
About ECLGS 
  • ECLGS ( launched in May 2020) as part of the Centre’s Aatmanirbhar packagein response to the Covid-19 crisis. It is aimed at giving the necessary collateral-free liquidity loans at reasonable interest rates (and 4-year timeline for reimbursement) to support small businesses struggling and other sectors including aviation.
  • 100% guarantee is provided by the National Credit Guarantee Trustee Company (NCGTC) to Member Lending Institutions (MLIs) – banks, financial institutions and Non-Banking Financial Companies (NBFCs).
  • First-time borrowers and Non-Performing Asset (NPA) accounts cannot raise funds under the scheme.
Source- LiveMint 

More Related Current Affairs View All

22 Aug

Uttarakhand State Authority for Minority Education (USAME) Bill, 2025

'The Uttarakhand Assembly on Wednesday passed the Minority Education Bill, 2025, extending minority status benefits to institutions run by the Sikh, Jain, Buddhist, Christian, and

Read More

22 Aug

India needs a national space law urgently

'A nation with a strong base in science and technology is a nation with a strong backbone” — these words of A.P.J. Abdul Kalam ring truer than before as India celebrate

Read More

22 Aug

Organ transplantation

'The National Organ and Tissue Transplant Organisation (NOTTO) recently issued a direction stating that women patients and relatives of deceased donors will receive priority in org

Read More

India’s First Ai-Driven Magazine Generator

Generate Your Custom Current Affairs Magazine using our AI in just 3 steps