What was the main purpose of the Emergency Credit Line Guarantee Scheme launched in May 2020?
Question and options
What was the main purpose of the Emergency Credit Line Guarantee Scheme launched in May 2020?
Collateral-free working-capital loans to street vendors hit by the lockdown
Interest subsidy on housing credit taken by first-time home buyers
Guaranteed extra credit to help businesses meet COVID-19 liquidity needs
Last-mile funding to complete stalled affordable and mid-income housing projects
Answer and explanation
The Emergency Credit Line Guarantee Scheme, part of the Atmanirbhar Bharat package of May 2020, gave a full guarantee through the National Credit Guarantee Trustee Company on additional credit so that MSMEs and other businesses could meet operational liabilities during the COVID-19 crisis. Collateral-free loans to street vendors came under the separate PM SVANidhi scheme.