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Extension of ECLGS up to 31st March, 2023 and Modification in the Scheme Guidelines

11 th Apr 2022

The Managing Directors/CEO's/Directors/Partners/General Managers
All FHRAI Members
 
CC: All Members of the Executive Committee
            All Regional Associations

Sub:- Extension of ECLGS up to 31st March, 2023 and Modification in the Scheme Guidelines

Dear Member,

This is in reference to the trailing mail regarding "Extension of ECLGS up to 31st March, 2023".

Please find below the links to access the Operational Guidelines and FAQs.

This is for your kind information.

With best regards,

Jaison Chacko
Secretary General
 _____________________________________________________
The Federation of Hotel & Restaurant Associations of India
Regd. Off.: B-82, 8th Floor, Himalaya House, 23 K.G. Marg, New Delhi - 110 001
Tel.: 011-40780780, Email: fhrai@fhrai.com  Website: www.fhrai.com

 

From: FHRAI <fhrai@fhrai.org>
Sent: Thursday, March 31, 2022 12:24 PM
To: eatosg@fhrai.com
Subject: Scope of Emergency Credit Line Guarantee Scheme (ECLGS) enhanced and validity extended till 31st March, 2023

31st March, 2022

 The Managing Directors/CEO's/Directors/Partners/General Managers
All FHRAI Members
 
CC: All Members of the Executive Committee
   All Regional Associations

Sub: –Scope of Emergency Credit Line Guarantee Scheme (ECLGS) enhanced and validity extended till 31st March, 2023
 
Dear Member,
 
We wish to inform you that acceding to the suggestions of FHRAI and other stakeholders from the  Travel, Tourism and Hospitality sector,  NCGTC has extended the term of the Emergency Credit Line Guarantee Scheme (ECLGS) up to March 31, 2023.
 
The Scope and extent of benefits under ECLGS 3.0 pertaining to hospitality, travel, tourism and civil aviation sectors has been expanded as follows:

  • New borrowers in the sectors covered under ECLGS 3.0 who have borrowed after 31.3.2021 and up to 31.1.2022 will also now be eligible to avail of emergency credit facilities under ECLGS 3.0.
  • The extent of emergency credit facilities that may be availed of under ECLGS 3.0 has been increased for eligible borrowers in all sectors covered under ECLGS 3.0. Eligible borrowers in all such sectors (other than the civil aviation sector) are now permitted to avail up to 50% of their highest fund based credit outstanding on any of three reference dates (29.2.2020, 31.3.2021 and 31.1.2022), as against the earlier limit of 40% of the higher of their fund-based outstanding on either of two reference dates (29.2.2020 and 31.3.2021). This is subject to the existing maximum of ₹200 crore per borrower.
  • Keeping in view the high proportion of non-fund based credit in the overall credit of the civil aviation sector, eligible borrowers in the civil aviation sector are now permitted to avail of non-fund based emergency credit facilities as well under ECLGS 3.0. As against the earlier limit of availing up to 40% of the higher of their fund-based outstanding as on either of two reference dates, subject to a maximum of ₹200 crore per borrower, they can now avail of up to 50% of their highest total fund and non-fund based credit outstanding on any of the three reference dates referred to above, subject to a maximum of Rs. 400 crore per borrower. Further, to lower their cost of accessing non-fund-based credit, bank guarantees, letters of credit and other non-fund based facilities sanctioned under ECLGS 3.0 will be issued without any cash margin and subject to a cap of 0.5% per annum on the fee/commission.
  • Individuals and proprietary concerns in the sectors covered under ECLGS 3.0 can also now avail of emergency credit facilities.
  • In order to remove any doubt regarding eligibility on this account, the sectors covered under ECLGS 3.0 have been clarified by enumerating businesses covered under them (list attached).

 The modifications introduced are aimed at enabling businesses in these contact-intensive sectors to get further support through enhanced coverage and collateral-free liquidity on capped interest rates / fees.

As on 25.3.2022, loans sanctioned under ECLGS have crossed ₹ 3.19 lakh crore, and about 95% of the guarantees issued are for loans sanctioned to Micro, Small and Medium Enterprises.
 
With best regards,

Jaison Chacko
Secretary General
_____________________________________________________
The Federation of Hotel & Restaurant Associations of India
Regd. Off.: B-82, 8th Floor, Himalaya House, 23 K.G. Marg, New Delhi - 110 001
Tel.: 011-40780780, Email: fhrai@fhrai.com  Website: www.fhrai.com

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THE FEDERATION OF HOTEL & RESTAURANT
ASSOCIATIONS OF INDIA

Address:

B-82, 8th Floor, Himalaya House, 23,
K. G. Marg, New Delhi-110 001

Telephone: 011-40780780

E-mail: fhrai@fhrai.com

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