The Centre has extended its MSME credit guarantee programme to cover loans issued to larger businesses, as well as to self-employed individuals and professionals who have borrowed for business purposes.

ECLGS was rolled out in May in response to the COVID-19 crisis as part of the Centre’s Aatmanirbhar package. It is a 100% collateral-free MSME loan which is issued to banks, NBFCs and financial institutions by the National Credit Guarantee Trustee Company (NCGTC) (FIs).

Qualified MSMEs had an annual turnover of up to 100 crore with outstanding loans of up to 25 crore as of 29 February 2020. The framework has been extended to cover businesses with a turnover of up to 250 crore, with loans of up to 50 crore outstanding.

The scheme is valid for current bank, NBFC or FI customers.