The Emergency Credit Line Guarantee Scheme (ECLGS) was good, but it helped a fraction of the 6.5 crore MSMEs as it supported only those who had existing loans. It offered additional working capital finance in the form of a term loan to MSMEs and professionals with an Initial corpus of ₹3 lakh crore, which was subsequently raised to ₹5 lakh crore. By January 31, guarantees amounting to ₹3.61 lakh crore was issued under ECLGS, benefiting 1.19 crore borrowers, the government had said in a statement. In case of a small enterprise, investment in plant and machinery should not exceed ₹10 crore and turnover does not exceed ₹50 crore. Medium enterprises are those where investment in plant and machinery does not exceed ₹50 crore and turnover does not exceed ₹250 crore.

Source: Hindustan Times November 14, 2023 05:18 UTC