The recently issued guidelines for the Guaranteed Emergency Credit Line Scheme for 26 sectors spells hope for the stressed real estate assets.
The ECLGS guidelines are applicable to stressed assets , with dues ranging from Rs 50 crore to Rs 500 crore as of February 29, 2020. Out of the Rs 3 trillion of guaranteed credit under the scheme, 2.1 trillion has already been deployed by the banks. The remaining amount under the announced guidelines, can be utilized by MSMEs, business enterprises and individual loans. The stress fund can be availed till the end of FY 21 or till the time, the entire earmarked amount of Rs 3 trillion gets deployed. The loans under the scheme are linked to external benchmark rates for MSMEs and MCLR for non-MSMEs. The principal amount is to be repaid in 48 installments after moratorium period for loans under ECLGS 2.0
Says Mr. Pradeep Aggarwal, Founder & Chairman, Signature Global and Chairman, National Council on Real Estate, Housing & Urban Development, Assocham ” This financial support system for stressed real estate assets surely provides lifeline to MSMEs in real estate. This support for the next about two quarters or so may well help stressed real estate companies to come out of the crisis.