FHRAI seeks enhancement of ECLGS loan term

    FHRAI has demanded enhancement of the ECLGS loan term pertaining to hospitality sector for maximum period under current provisions. In a letter written to Narayan Tutu Rane, Minister for Micro, Small & Medium Enterprises, Govt. of India, Federation requested, “We would like to reiterate the concern areas of the hospitality sector with regard to the ECLG Scheme as the following: the repayment period of six years is too little for a sector that was the first to get affected from COVID and was also the biggest sufferer from COVID; extension of ECLGS without long-term repayment option has only increased the credit burden of the industry; the additional loans taken through ECLGS that needed to be repaid in a short duration is very badly impacting the business viability of the industry members who are still struggling to service the previous loans and the business environment of the sector is highly volatile and unpredictable and only a long-term credit facility can help the industry to withstand the challenges arising out of the prolonged effects of COVID.”