The scheme was designed to support existing borrowers meet the liquidity crisis due to COVID-19 pandemic. Ministry of MSME has launched Credit Guarantee Scheme for Subordinate Debt (CGSSD) to extend financial assistance to stressed MSMEs including NPA accounts, minister of MSME Narayan Rane said in a written reply to the Rajya Sabha.
ECLGS being a demand driven scheme, sanctions/disbursements are made by lending institutions based on assessment of borrower’s requirement and their eligibility.
The ECLGS 1.0 is for MSME units, business enterprises, mudra borrower and individual loans for business purpose having loan outstanding up to ₹50 crore and days past due up to 60 days as on Feb 02, 2020.
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