MoneycontrolMay 25, 2022Facing delay in receiving government guarantee for loans under ECLGS: South Indian Bank MDThe Emergency Credit Line Guarantee Scheme (ECLGS) has enabled last-mile loans to micro, small and medium enterprises (MSMEs) across the country. However, banks are facing operational delay in receiving the guaranteed credit amount from the government in case of defaults, Murali Ramakrishnan, managing director and chief executive officer at South Indian Bank, told Moneycontrol on May 24.“The ECLGS has been propagated quite well to avert the Covid-19 crisis. In terms of compensation, however, wherever the cases have gone bad the compensation process seems very difficult. Out of 100 cases we submit they only read some five cases and keep 95 cases as work in progress and it takes an enormously long time and that is something which can be expedited,” the MD said.Read more at Moneycontrol
The Emergency Credit Line Guarantee Scheme (ECLGS) has enabled last-mile loans to micro, small and medium enterprises (MSMEs) across the country. However, banks are facing operational delay in receiving the guaranteed credit amount from the government in case of defaults, Murali Ramakrishnan, managing director and chief executive officer at South Indian Bank, told Moneycontrol on May 24.“The ECLGS has been propagated quite well to avert the Covid-19 crisis. In terms of compensation, however, wherever the cases have gone bad the compensation process seems very difficult. Out of 100 cases we submit they only read some five cases and keep 95 cases as work in progress and it takes an enormously long time and that is something which can be expedited,” the MD said.Read more at Moneycontrol
