The government has approved around 20,000 applications worth nearly ₹25,000 crore under the newly launched Emergency Credit Line Guarantee Scheme (ECLGS) within a week of its rollout, according to sources familiar with the matter.The approvals indicate strong early traction for the scheme, which has been designed to provide emergency liquidity support to businesses facing financial stress.
Sources said all approved applications so far are from micro, small and medium enterprises (MSMEs), with no approvals yet from the aviation sector.
The latest uptake also suggests pockets of stress may be emerging within the MSME segment, even as the broader economy continues to show resilience.The government had recently rolled out the new ECLGS framework to improve credit flow to eligible borrowers through government-backed guarantees, helping businesses access loans more easily during periods of financial strain.Officials said the response from lenders and borrowers has been encouraging in the initial phase, with banks processing applications at a relatively fast pace.The ECLGS was originally introduced during the COVID-19 pandemic to support businesses hit by economic disruptions. The latest rollout is aimed at extending targeted support to sectors and entities facing fresh liquidity pressures.Sources added that authorities are closely monitoring the implementation and response to the scheme as disbursements gather pace.
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