Centre enhances collateral-free loan limit of airlines to tide over their cash crunch
With operating costs of airlines rising post an unprecedented rise in jet fuel price and devaluation of the rupee against the dollar, the Centre on Wednesday allowed them to avail more collateral-free loans to tide over their cash flow issues.
The credit limit to them has been enhanced under the government’s Emergency Credit Line Guarantee Scheme (ECLGS) that was started during the Covid-19 pandemic.
The airlines have been allowed to avail additional debt of upto 100 per cent of their outstanding credit, subject to a cap of Rs 1,500 crore.
