CODISSIA requests eligibility under ECLG scheme for COVID-19 related stress of MSMEs
Coimbatore: CODISSIA in press release said, "Due to the unexpected second wave of COVID-19, the supply chain of MSME industries throughout India got very badly affected which had direct bearing on the sales, leading to shortage of working capital and cash flow.
This has resulted in non-payment of dues to the banks by the MSMEs promptly.Centre had announced an additional 10% loan under ECLG Scheme with a rider clause as this will be eligible only to MSMEs those who have availed restructuring loan during the last year. Even though this was a welcoming move by the Government and need of the hour, since individuals and businesses have been gravely affected by the pandemic’s first and second wave and also due to continuous lock down, nearly 90% of the MSMEs could not avail this offer of restructuring their loans, thereby they become ineligible to avail this 10% additional loan under ECLG Scheme."
It added, "We request the Finance Minister to consider amending the eligibility class and help MSMEs to avail the loan without any condition or rider clause under the above scheme. Further, we have also requested to consider sanctioning 20% loan under ECLG Scheme this time also for MSMEs, based on their working capital / cash credit limits to be sanctioned by the banks and NBFCs and we hope favourable orders will be released by the Finance Minister at the earliest for the continuous operation of MSMEs and their survival."
This has resulted in non-payment of dues to the banks by the MSMEs promptly.Centre had announced an additional 10% loan under ECLG Scheme with a rider clause as this will be eligible only to MSMEs those who have availed restructuring loan during the last year. Even though this was a welcoming move by the Government and need of the hour, since individuals and businesses have been gravely affected by the pandemic’s first and second wave and also due to continuous lock down, nearly 90% of the MSMEs could not avail this offer of restructuring their loans, thereby they become ineligible to avail this 10% additional loan under ECLG Scheme."
It added, "We request the Finance Minister to consider amending the eligibility class and help MSMEs to avail the loan without any condition or rider clause under the above scheme. Further, we have also requested to consider sanctioning 20% loan under ECLG Scheme this time also for MSMEs, based on their working capital / cash credit limits to be sanctioned by the banks and NBFCs and we hope favourable orders will be released by the Finance Minister at the earliest for the continuous operation of MSMEs and their survival."