FIEO urges government to extend ECLGS loan repayment period by one year
New Delhi, August 18 (KNN) The Federation of Indian Export Organizations (FIEO) has asked the government to consider extending the repayment period for loans under the Emergency Line of Credit Guarantee (ECLGS) scheme by one year.
Currently, the repayment period is three to four years, including the moratorium period under the scheme which has been described as a very short period by the Parliamentary Standing Committee on Industry and has recommended an extension to seven Eight years.
Thanking the government for raising the limit under the ECLGS scheme from Rs 4.5 lakh crore to Rs 5 lakh crore with an additional allocation of Rs 50,000 crore only for hospitality and related sectors, Dr A Sakthivel , FIEO President, said the improvement should provide much-needed support to companies in these sectors.
“This will encourage banks to provide additional credits of up to Rs 50,000 crore at a very competitive cost,” he said.
The FIEO chief further said that it would help the worst victims of Covid, who are still struggling to regain ground and would help companies to meet their operational responsibilities and grow their businesses.
He urged the government to consider extending the reimbursement period for ECLGS 1.0, 2.0, 3.0 and 4.0 by one year to reduce the reimbursement burden on companies as companies again face headwinds.
Sakthivel said the ECLGS scheme has been extremely helpful to the industry in providing unsecured credit, at a time when the quality of collateral has deteriorated significantly due to Covid. (KNN Office)