Guaranteed loans will be provided to stressed assets

The scheme will be in force till March 31 or till the time Rs 3 trillion is sanctioned under the scheme “taking into account both emergency credit line guarantee scheme 1.0 and 2.0, whichever is earlier.”

“Accordingly, you should avail of the guarantee cover at the earliest or else you may lose the same if the amount of guarantees issued under the scheme crosses the mark of Rs.3 lakh crore,” the frequently asked questions issued by the National Credit Guarantee Trustee Company, which is providing credit guarantee for the scheme, on Thursday said.

This means that the credit line for stressed assets would be out of the remaining Rs 1 trillion, which can also be utilised by micro, small and medium enterprises, business enterprises, and individual loans for business purposes with credit outstanding of up to Rs 50 crore from financial institutions.

Guaranteed loans will be provided to stressed assets, impacted by the Covid-19 pandemic, from the existing credit line of Rs three trillion earmarked for the previous scheme meant for small businesses.

The operational guidelines for the ‘guaranteed emergency credit line’ scheme issued on Thursday stated that the scheme would be applicable to all 26 sectors, identified by the K. V. Kamath committee on resolution framework and health sector, with past dues from Rs 50-Rs 500 crore as of 29 February, 2020.