New Delhi, 05 AUG 2021: Emergency Credit Line Guarantee Scheme (ECLGS) was announced as part of the Atma Nirbhar Bharat Package in 2020 with the objective to help businesses including MSMEs to meet their operational liabilities and resume business in view of the distress caused by the COVID-19 crisis, by providing Member Lending Institutions (MLIs), 100 per cent guarantee against any losses suffered by them due to non-repayment of the ECLGS funding by borrowers.  The eligibility criteria for availing credit under ECLGS are: · For ECLGS 1.0; MSME units, Business Enterprises, Mudra Borrower and individual loans for the business purposes having loan outstanding up to Rs.50 crore and days past due up to 60 days as on 29.02.2020. · For ECLGS 2.0; Borrower belonging to 26 stressed sectors identified by Kamath Committee & Healthcare sector having loan outstanding above Rs.50 crore and up to Rs.500 crore and days past due up to 60 days as on 29.02.2020. · For ECLGS 3.0; Borrower belonging to Hospitality, Travel & Tourism, Leisure & Sporting and Civil Aviation sector having days past due up to 60 days as on 29.02.2020. · For ECLGS 4.0; Existing Hospitals/Nursing Homes/Clinics/Medical Colleges/units engaged in manufacturing of liquid oxygen, oxygen cylinders etc. having a credit facility with a lending institution with days past due up to 90 days as on March 31, 2021. · The overall ceiling initially announced for ECLGS was Rs 3 lakh crore which was subsequently enhanced to Rs 4.5 lakh crore. However, ECLGS being a demand-driven scheme, sanctions/disbursements are made by lending institutions based on the assessment of borrower’s requirement and their eligibility. ECLGS is under the operational domain of the Ministry of Finance, Department of Financial Services (DFS). As informed by DFS, as on 2.07.2021 an amount of Rs.2.73 lakh crore have been sanctioned under the scheme of which an amount of Rs.2.14 lakh crore has been disbursed. Total 1.14 crore borrowers have been issued guarantees under the scheme. In order to ensure easy and softer repayment terms on the credit extended to the MSME sector, the Government has capped the interest rate under…