The Entrepreneurs and Financial Customers Association of India (EFCAI) has urged for extention of moratorium on ECLGS1 loan under simple applications without restructuring the account as demanded by banks.
In a letter to Union Finance Minister Nirmala Sitharaman, EFCAI working chairperson Capt Harendra N Mahapatra welcomed the ECLG Scheme and held its extension as necessary. "We wish to bring to your kind notice that vide your notification, the principal moratorium of ECLGS 1 has been extended to 24 months and the repayment of principal with interest in 36 months thereafter, whereas the banks insist that such facility can only be extended under restructuring which means the account shall not be eligible for any further loans and shall be treated as a sub standard account," he said.
Justifying the extension of moratorium decision of the Finance Ministry for the MSMEs struggling for survival as pandemic is still in persistence, he sought an order to the banks to extend such extension of moratorium to the borrowers under simple applications without restructuring the account.
