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Government Extends Validity of ECLGS till June, 2021; ECLGS 3.0 Introduced to cover more Sectors

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emergency credit line guarantee scheme till JuneThe Ministry of Finance has extended the validity of Emergency Credit Line Guarantee Scheme (ECLGS) by another 3 months till June 30, 2021 or till such time that an amount of INR 3 Lakh crore (Target Credit Line) is sanctioned under the Scheme. Additionally, the scope of ECLGS has been widened through introduction of ECLGS 3.0.

  • ECLGS 3.0 covers business enterprises in Hospitality, Travel & Tourism, Leisure & Sporting Sector.
  • The extension of validity is applicable for ECLGS 1.0, 2.0 & 3.0.
  • Last date of disbursement under the scheme has been extended to September 30, 2021.


  • Extension of credit of upto 40% of total credit outstanding (earlier it was 20%) across all lending institutions as on February 29, 2020.
  •  It will be applicable for accounts that had past dues of up to INR 500 Crore as of February 29, 2020.
  • Tenor of Loans – 6 years including a moratorium period of 2 years.
  • The scheme provides incentive to MLIs (Member Lending Institutions) for enabling availability of additional funding facilities to the eligible beneficiaries.
  • It will help in economic revival, protection of jobs, and creating a conducive environment for employment generation.
  • Revised operational guidelines for ECLGS 3.0 will be issued by National Credit Guarantee Trustee Company Ltd (NCGTC).

Emergency Credit Line Guarantee Scheme (ECLGS):

  • In May, 2020, Union Cabinet chaired by Prime Minister Narendra Modi approved ECLGS Scheme. It was announced as part of Government’s ‘Atma Nirbhar’ or self-sufficiency package.
  • It aims to mitigate the economic distress faced by Micro, Small and Medium Enterprises (MSMEs) during the COVID-19 Pandemic.
  • It will provide 100 percent guarantee for any losses suffered by them due to non-repayment of GECL (Guaranteed Emergency Credit Line) funding by borrowers.
  • Government has incurred an expense of INR 4, 000 Crore to provide Guarantee on 91.9 Lakh Loans amounting to INR 2.01 Lakh Crore as on March 15, 2021


  • ECLGS 1.0 had a 1-year moratorium period and a 4-year repayment period, ECLGS 2.0 had a 1-year moratorium period and a 5-year repayment period.

Recent Related News:

i.On November 2, 2020, Government of India extended ECLGS by one month (i.e.) 30th of November or till an amount of INR Three Lakh Crore is sanctioned under the scheme, whichever is earlier.

About Ministry of Finance:

Union Minister – Nirmala Sitharaman (Rajya Sabha MP representing Karnataka)
Minister of State (MoS) – Anurag Singh Thakur (Lok Sabha MP, Constituency – Hamirpur, Himachal Pradesh)