In a huge relief to the aviation industry, the finance ministry has enhanced the credit limit to airlines under the Emergency Credit Line Guarantee Scheme (ECLGS), making them eligible for 100% of their fund-based or non-fund-based loan outstanding debt, up to ?1,500 crore.

• Earlier, the scheme allowed the airlines to borrow up to 50% of their credit outstanding up to ?400 crore but now they can avail of up to 100% of the credit.
• The ECLGS will help them to recover their cash flow problems. Earlier, an airline could only avail of a loan of not more than Rs 400 crore under the ECLGS.
• In 2020, the Centre started to provide collateral-dree and government-guaranteed loans to businesses affected by the Covid-19 pandemic.