FIEO Urges Govt to Extend ECLGS Loan Repayment Period

Federation of Indian Export Organisations (FIEO) has requested the government to consider extending loan repayment period under Emergency Credit Line Guarantee Scheme (ECLGS) by one more year.

Presently the repayment period is of three-four years including the moratorium period under the scheme which has been called as a very short period by the Parliamentary Standing Committee on Industry and recommended an extension up to seven to eight years.

Thanking the government for enhancing the limit under the ECLGS Scheme from Rs 4.5 lakh crore to Rs 5 lakh crore with additional allocation of Rs 50,000 crore solely for hospitality and related sectors, Dr A Sakthivel, President, FIEO said that the enhancement is expected to provide much needed support to enterprises in these sectors.

“This will encourage banks to provide additional credit of up to Rs 50,000 crore at a very competitive cost,” he said.