Another expansion is possible for the guaranteed credit scheme; a major leap forward for hospitals may be on the cards

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Emergency Loan Guarantee Scheme (ECLGS) the government may need a significant increase – up to Rs 5 lakh crores from Rs 3 million currently.

In addition, it is possible that the scope of the scheme will be expanded to include hospitals ToI, citing sources, said that in order to strengthen the health infrastructure in the country.

The increase in size became necessary as the loans under the scheme approached the original ceiling of Rs 3 million faster than expected. The original ECLGS was limited to micro, small and medium enterprises, but later expanded to many other sectors.

As part of the ECLGS healthcare expansion plan, hospitals located in new and old buildings will now be eligible for loans, according to the report, citing sources.

Hospitals will be allowed to use a maximum of Rs 100 crores in loans under the ECLGS. Also, objects in cities that do not belong to megacities will be admitted.

The National Credit Guarantee Company guarantees up to 75% funding when a new hospital is opened. For existing hospitals in need of expansion, the guarantee is 50%.

IN Ministry of Finance is currently receiving the permissions required for the latest ECLGS extension. The extended framework will take effect as soon as these permissions are received.

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