Question Bank - Banking & Financial Services

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As per the recent discussion, the emergency credit line guarantee scheme will be extended till which year?

A.
Mar-23
B.
Mar-24
C.
Mar-25
D.
Mar-26

Solution:

The correct answer is March 2023. Union finance minister Nirmala Sitharaman, in her Budget 2022 speech, announced the extension of the Emergency Credit Line Guarantee Scheme (ECLGS) till March 2023. Presenting her fourth Budget, Ms. Sitharaman said the cover of the scheme will be expanded by ? 50,000 crores to ? 5 lakh crore. An additional amount has been earmarked exclusively for hospitality, related sectors and the government will take steps to make the MSME (Micro, Small and Medium Enterprises) sector more resilient, she added. The government had launched the scheme in view of the Covid-19 pandemic to provide credit facilities to business enterprises, small and medium businesses (MSMEs). In September last year, the Centre had expanded the funds allotted under ECLGS from ? 3 lakh crore initially to ? 4. 5 lakh crore and also extended the scheme until March 2022. Additional InformationThe scheme provides 100 percent guarantee coverage for additional working capital term loans up to 20 percent of the outstanding credit. Only those MSME borrowers with outstanding loans of up to ? 50 crores as of February 29, 2020, and turnover of up to ? 250 crores for FY 2019-20, were eligible. Comments Further, the Finance Minister underlined that the country is expected to grow at 9. 2 percent in the current financial year, on the back of a sharp rebound in the economy

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