New Delhi, April 8 -- The government is considering a Rs.2.5 lakh crore credit guarantee scheme to support businesses, especially micro, small and medium nterprises (MSMEs) impacted by the West Asia crisis, sources said. Under the scheme, a credit guarantee of about 90% on loans of up to Rs.100 crore would be provided to lenders in case of default by borrowers due to the ongoing US-Iran conflict. The guarantee on bank loans would be provided by the National Credit Guarantee Trustee Company (NCGTC), a wholly-owned subsidiary of the government. The government would have to provide about Rs.17,000 crore to Rs.18,000 crore for the scheme. Sources said the scheme was a huge success during the covid-19 pandemic and helped many businesses across various sectors to stay afloat and clear their dues. The government in May 2020 announced the Emergency Credit Line Guarantee Scheme (ECLGS) as part of the Aatmanirbhar Bharat Abhiyaan to support eligible MSMEs and other eligible business enterprises in meeting their operational liabilities and restarting their businesses in the context of the disruption caused by the covid-19 pandemic. ECLGS covered almost all the sectors of the economy, and a 100% guarantee was provided to Member Lending Institutions (MLIs) in respect of the credit facility extended by them under the scheme to eligible borrowers. The structure of the scheme permitted easy access to credit as the lenders offer pre-approved loans based on the borrower's existing credit outstanding, and there is no fresh appraisal undertaken by lenders since additional credit was sanctioned over and above the credit facilities already assessed. Further, the interest rate was also capped with a view to lowering the cost of credit and loans are sanctioned without any processing charges, pre-payment charges and guarantee fees. The Scheme continued till March 31, 2023. Besides, the government has taken a slew of measures in the recent past to mitigate the hardship of the common man, including slashing of excise duty on petrol and diesel....