New Delhi, May 25 -- The government today notified the Rs 3 lakh crore Emergency Credit Line Guarantee Scheme for Medium, Small and Micro Enterprises (MSMEs) under the Atma Nirbhar Bharat Abhiyan.

The scheme aims to help them the MSMEs to fight the economic distress being faced due to the COVID-19 pandemic.

Under this scheme, MSME borrowers with upto Rs 25 crores of total borrowing can avail an additional 20 percent of the loan outstanding from banks, NBFCs and other financial institutions (FI). This incremental lending by banks and financial institutions of upto Rs 3 lakh crore in total will be 100 percent guaranteed by the Government of India.

Borrowers will have a one-year moratorium of repayment, and the interest rate charged by b...