Schedule a Call Back
MSME body CIMSME requests RBI to extend repayment period under ECLGS
Industry News- Jun 11,21
CIMSME urged for extension of repayment under ECLGS 1.0 from three to five years after the moratorium period. It also requested the extension for all MSMEs without any restriction.
Chamber of Indian Micro, Small & Medium Enterprises (CIMSME) has written a letter to Reserve Bank of India (RBI) Governor Shaktikanta Das requesting the extension of the repayment period under the Emergency Credit Line Guarantee Scheme (ECLGS) 1.0 from three to five years after the moratorium period and extension of the same to all MSMEs without restrictions.
Mukesh Mohan Gupta, President, CIMSME stated that, due to COVID-19 the cost of production has increased due to the increased time for procuring raw materials and conversion into finished products. Lack of labour and end-use of ECLGS for fixed expenses hit the profitability of MSMEs and they would not be in a position to repay this credit in three years after the moratorium period. The MSME body, representing over 1 lakh MSMEs, insisted on a centralised loan application portal for the Subordinate Debt Scheme launched by the government as part of the Atmanirbhar package.
The government recently extended the ECLGS 1.0 moratorium period for interest payment to two years while the period for repaying the principal and interest was three years. This scheme is currently applicable to borrowers eligible for loan restructuring as per RBI guidelines dated May 5, 2021.
Source – Financial Express
Micro
Small & Medium Enterprises
MSME
Chamber of Indian Micro
Small & Medium Enterprises
Reserve Bank of India
Emergency Credit Line Guarantee Scheme
COVID 19
Related Stories
Policy Regulation
GOI to launch credit guarantee scheme for MSMEs covering loans upto Rs 1 billion
The government is also focusing on promoting rural entrepreneurship, with an emphasis on enhancing quality, building export linkages, capacity development, and achieving the vision of ‘Viksit Bhar..
Read morePolicy Regulation
Private capex revival remains unlikely in 2025, says RBI survey
The findings differ from the RBI’s Financial Stability Report (FSR), which indicated that India’s economic growth is poised to recover in 2025, driven by strong consumer and business confidence...
Read moreSmart Manufacturing
A new future: The advent of a ‘provice’
This is a new era, where each product is a combination of product and service, and hence, there is an urgent need of a new term for this new creature. My choice is ‘provice’, till a better name ..
Read moreRelated Products
Tata Motors unveils facilities for development of Hydrogen propulsion tech
AUTO COMPONENTS & ACCESSORIES
Tata Motors, India?s largest automobile company, unveiled two state-of-the-art & new-age R&D facilities for meeting its mission of offering sustainable mobility solutions. The unveilings constitute of Read more
Tata Motors plans petrol powertrain for Harrier and Safari SUVs
AUTO COMPONENTS & ACCESSORIES
Tata Motors is in the process of developing a new petrol powertrain for its premium sports utility vehicles, the Harrier and Safari, as confirmed by a senior company official. Currently, these models Read more
Electric Vehicle Charger
AUTO COMPONENTS & ACCESSORIES
RRT Electro is engaged in manufacturing of customized Power Electronic Products over two decades having capability to Design, Develop, Prototyping, Regulatory Compliance testing & Certification, Manuf Read more
latest News
Subscribe to iNoW
For Industry News on WhatsApp, Give a Miss Call on: +91 84228 74016
