Question
In the Union Budget 2022-23, the government has
expanded the Emergency Credit Line Guarantee Scheme (ECLGS) by how much amount?Solution
ECLGS will be extended up to March 2023 . ECLGS’s guarantee cover will be expanded by Rs.50,000 crore to the total cover of Rs 5 lakh crore , with the additional amount being earmarked exclusively for hospitality and related enterprises. Under ECLGS, which is for helping companies tide over liquidity crunch resulting from Covid-19 curbs, banks provide additional loans to existing borrowers without asking for extra collateral. To encourage banks, these loans are fully guaranteed by the government against credit losses. The guarantee is provided by National Credit Guarantee Trustee Company (NCGTC) .
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