Home Auto News Industry Banks sanction Rs 1.38 lakh crore loans to MSMEs under ECLGS

Banks sanction Rs 1.38 lakh crore loans to MSMEs under ECLGS

New Delhi: The Finance Ministry on Tuesday said banks have sanctioned loans of about Rs 1,37,586 crore under the Rs 3-lakh crore Emergency Credit Line Guarantee Scheme (ECLGS) for MSME sector, hit exhausting by the financial slowdown due to COVID-19 pandemic.

However, disbursements towards this stood at Rs 92,090.24 crore until August 3 under the 100 per cent ECLGS for micro, small and medium enterprises (MSMEs).

The scheme is the largest fiscal part of the Rs 20-lakh crore Aatmanirbhar Bharat Abhiyan bundle introduced by Finance Minister Nirmala Sitharaman in May.

The newest numbers on the ECLGS, as launched by the Finance Ministry, embody disbursements by all 12 public sector banks (PSBs), 23 private banks and 30 non-banking monetary corporations (NBFCs).

Last week, the federal government widened the scope of the Rs 3-lakh crore MSME credit score assure scheme by doubling the higher ceiling of loans excellent to Rs 50 crore and together with sure particular person loans given to professionals like medical doctors, attorneys and chartered accountants for enterprise functions under its ambit.

The scheme is now relevant for corporations with an annual turnover of Rs 250 crore as towards the sooner Rs 100 crore and the utmost quantity of assured emergency credit score line (GECL) funding under the scheme doubled to Rs 10 crore.

“As of 03 Aug 2020, the total amount sanctioned under the 100 per cent Emergency Credit Line Guarantee Scheme by #PSBs and private banks stands at Rs 1,37,586.54 crore, of which Rs 92,090.24 crore has aly been disbursed,” the finance minister said in a tweet.

Under the ECLGS, the mortgage quantities sanctioned by PSBs elevated to Rs 72,820.26 crore, of which Rs 52,013.73 crore has been disbursed as of August 3, she said.

At the identical time, private sector banks have sanctioned Rs 64,766 crore and disbursed Rs 40,076 crore.

“Compared to 23 July 2020, there is an increase of Rs 7,094.75 crore in the cumulative amount of loans sanctioned & an increase of Rs 10,025.23 crore in the cumulative amount of loans disbursed by both #PSBs and private sector banks combined as on 03 Aug 2020,” Sitharaman said.

Among the banks, SBI has sanctioned the best quantity at Rs 21,121 crore of loans and disbursed Rs 16,047 crore. It is adopted by Punjab National Bank, which has sanctioned Rs 9,809 crore. However, its disbursements stood at Rs 6,351 crore as of August 3.

On May 20, the Cabinet permitted further funding of up to Rs 3 lakh crore at a concessional rate of 9.25 per cent by way of ECLGS for MSME sector.

Under the scheme, 100 per cent assure protection is offered by the National Credit Guarantee Trustee Company (NCGTC) for added funding of up to Rs 3 lakh crore to eligible MSMEs and Micro Units Development and Refinance Agency (MUDRA) debtors within the type of a GECL facility.

For this goal, a corpus of Rs 41,600 crore was arrange by the federal government, sp over the present and subsequent three monetary years.

The scheme shall be relevant to all loans sanctioned under GECL facility through the interval from the date of announcement of the scheme to October 31 or until the quantity of Rs 3 lakh crore is sanctioned under GECL, whichever is earlier.

All MSME borrower accounts with an impressive credit score of up to Rs 50 crore as on February 29, which have been lower than or equal to 60 days overdue as on that date, i.e., common, SMA-Zero and SMA-1 accounts, and with an annual turnover of up to Rs 250 crore are eligible for GECL funding under the scheme.

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