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Union Cabinet approves expansion of Emergency Credit Line Guarantee Scheme to support travel, tourism sectors ECLGS
Image: Pixabay

Union Cabinet approves expansion of Emergency Credit Line Guarantee Scheme to support travel, tourism sectors

India Blooms News Service | @indiablooms | 17 Aug 2022, 09:13 pm

New Delhi: The Union Cabinet has extended the Emergency Credit Line Guarantee Scheme (ECLGS) from Rs 50,000 crore to Rs 5 lakh crore, Information & Broadcasting Minister Anurag Thakur said Wednesday.

The additional sanctioned funds would be exclusively made available for travel, tourism, and the hospitality sector, he said.

The ECLGS was launched to help the small businesses hit by the pandemic and has since been expanded to include more sectors.

Further in a step to ensure adequate credit flow in the agriculture sector, the Cabinet approved an interest subvention or rebate of 1.5 percent per annum for short-term agricultural loans up to Rs 3 lakh.

This increase in Interest Subvention support will be provided to lending institutions and would require additional budgetary provisions of Rs 34,856 crore for the period of 2022-23 to 2024-25 under the scheme.

The lending institutions have been provided the support in wake of the recent increase in policy interest rate by the Reserve Bank of India, minister Thakur said.

Farmers will continue to get interest subvention or rebate of 3 percent, as usual on eligible loans, he said.