Tirupur Exporters’ Association (TEA) has requested Government for the announcement of 10 per cent additional credit assistance of the outstanding as on 29 February 2020 to MSME borrowers covered under ECLGS 1.0 without any precondition for restructuring of the account.
The tenor can be fixed as 5 years, comprising repayment of interest only during first 1 year and interest and principal in 4 years thereafter.
Currently, it is eligible only to the units which go for restructuring as per RBI notification dated 5 May 2021 on Resolution Framework 2.0 – Resolution of COVID-19 related stress of MSMEs.
Under this facility, for repayment, the overall tenor has been fixed 5 years, comprising repayment of interest only during first 2 years and interest and principal in 3 years thereafter.
Raja M. Shanmugham, President, TEA has sent a requisition letter to Nirmala Sitharaman, Union Minister of Finance.
He also requested for announcement of RoDTEP rates immediately and extension of Interest Equalisation Scheme for next 3 years.