Q. With reference to the Emergency Credit Line Guarantee Scheme (ECLGS) 5.0, consider the following statements:
1.It provides a 100% government guarantee to banks and financial institutions for additional loans extended to both MSMEs and non-MSMEs entities.
2.The scheme is implemented through the National Credit Guarantee Trustee Company (NCGTC).
3.Under ECLGS 5.0, the government directly provides interest subsidy to borrowers instead of credit guarantee support.
How many of the above statements are correct?
Answer: A
Notes:
Explanation: 2 only
Statement 1 is incorrect: The Emergency Credit Line Guarantee Scheme (ECLGS) 5.0 aims to provide credit guarantee coverage of 100% for MSMEs and 90% for non-MSMEs as well as airline sector.
Statement 2 is correct: The scheme is implemented through the National Credit Guarantee Trustee Company (NCGTC).
Statement 3 is incorrect: It is a credit guarantee scheme, not an interest subsidy scheme.
Source: PIB
