Credit Line Guarantee Scheme: Hospitality sector pushes for govt for ECLGS

May 03 2021 09:44 AM
Credit Line Guarantee Scheme: Hospitality sector pushes for govt for ECLGS

The Federation of Hotel and Restaurant Associations of India (FHRAI) on Sunday said it has requested Finance Minister Nirmala Sitharaman to provide a special credit guarantee window to the hospitality sector under the Emergency Credit Line Guarantee Scheme (ECLGS).

In the representation, the industry body has asked the government to standardise and align the tenure and the moratorium facilities floated under ECLGS 1.0, 2.0 and 3.0, FHRAI said in a statement

The Associaion has also asked that the tenure of loan and moratorium facilities granted under the ECLGS 3.0 should be extended to loans already sanctioned under the earlier emergency credit line guarantee schemes with retrospective effect, it added.

"The repayment schedule for loans taken under ECLGS 1.0 and 2.0 are likely to begin now, but unfortunately due to the ongoing lockdown many establishments do not have the cash flow to repay it.

"Therefore, it is imperative to align the tenure and moratorium facilities under ECLGS 1.0 and 2.0 with ECLGS 3.0," FHRAI Vice-President Gurbaxish Singh Kohli said.

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