The main objective of the scheme is to ensure that the lender gives importance to project viability and secures the credit facility purely on the basis of primary security of the assets financed.
"Cooperative banks that are not included as a member lending institutions under the Emergency Credit Line Guarantee Scheme (ECLGS) will be included as lenders for MSMEs, under a scheme being discussed in consultation with the RBI," a FICCI statement quoted Gadkari as saying.
All existing MSME borrowers with outstanding credit of up to Rs 25 crore as on February 29 and with an annual turnover of up to Rs 100 crore would be eligible for funding under the scheme.
