Budget likely to extend credit facility for MSMEs

The government could extend its Rs 4.5 lakh crore sovereign- guaranteed credit facility for small businesses to the next fiscal year as the pandemic is not yet over and the scheme has been successful in providing liquidity support to over 10 million enterprises protecting about 54.5 million jobs, people aware of the development said.

The Emergency Credit Line Guarantee Scheme (ECLGS) which ends on March 31, 2022 could be extended in the next financial year as several small firms, particularly in the services sector, still need such liquidity support in the wake of new Covid-19 variants two persons aware of the development said requesting anonymity.

ECLGS is one of the key components of the Rs 20 lakh crore economic stimulus package under the Atmanirbhar Bharat Abhiyan launched in mid-May last year that offers additional working capital finance in the form of a term loan to MSMEs and professionals.

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