Airlines to get extra credit support under key scheme

The finance ministry has relaxed the norms under the Emergency Credit Line Guarantee Scheme (ECLGS) to facilitate collateral-free loans to civil aviation firms at reasonable rates to cope with their cash flow issues, a move that could benefit smaller airlines like SpiceJet and Go First.

The department of financial services has raised the maximum loan amount for airlines under the ECLGS 3.0 to 100% of their highest outstanding advances as on the reference dates, or Rs 1,500 crore, whichever is lower. Of this amount, loans of Rs 500 crore will be considered, based on the equity contribution by the owners, according to the revised norms.