Widen MSME scheme ambit: Private lenders to FM Nirmala Sitharaman

Govt likely to issue clarification to add more borrowers under ECLGS

Finance Minister Nirmala Sitharaman on Monday held a review meeting with private banks and non-banking financial companies (NBFCs) to seek feedback to improve the Atmanirbhar Bharat Abhiyan economic package to deal with the impact of Covid-19.

The private lenders asked the government to revisit some provisions in the Emergency Credit Line Guarantee Scheme (ECLGS), under which 100 per cent guarantee coverage is provided to all lenders to enable additional funding to the tune of Rs 3 trillion to smaller business enterprises, to make the scheme more attractive. The scheme is valid for existing customers of banks.

The finance ministry said