India readies ₹2.5L/cr credit guarantee scheme amid West Asia conflict
India is preparing to unveil a big credit guarantee scheme, worth up to ₹2.5 lakh crore, to support businesses hit by rising costs from the ongoing West Asia conflict.
The goal is to make it easier for companies, especially those struggling with higher input and shipping expenses, to get loans and keep things running smoothly.
The official announcement should come in the next few weeks.
Modeled on ECLGS, 100% collateral-free loans
This new scheme takes a page from the Emergency Credit Line Guarantee Scheme (ECLGS) used during COVID-19, could offer 100% guaranteed collateral-free loans for eligible businesses, including MSMEs, so they can manage cash flow hiccups without extra stress.
The government is also checking in with different industries right now to make sure support goes where it's needed most, especially as some export sectors are starting to feel the pinch.