Wednesday, Jul 15, 2020 | Last Update : 10:32 AM IST

112th Day Of Lockdown

Maharashtra26766514900710695 Tamil Nadu147324973102099 Delhi115346932363446 Karnataka4407717391846 Gujarat43723305552070 Uttar Pradesh3972424981983 Telangana3774524840375 Andhra Pradesh3301917467408 West Bengal3283819931980 Rajasthan2557119169524 Haryana2262817090312 Madhya Pradesh1900513575673 Bihar1885313019143 Assam178081217451 Odisha14280986496 Jammu and Kashmir111736223195 Kerala8931443835 Punjab85115663213 Chhatisgarh4379327520 Jharkhand4225242836 Uttarakhand3686286750 Goa2753160718 Tripura218315382 Manipur167210200 Puducherry153182918 Himachal Pradesh130993810 Nagaland8963460 Chandigarh60044610 Arunachal Pradesh3871453 Meghalaya318462 Mizoram2381590 Sikkim211860
  Business   Economy  03 Jun 2020  Public sector banks disburse Rs 3,893 cr loans to MSMEs

Public sector banks disburse Rs 3,893 cr loans to MSMEs

PTI
Published : Jun 3, 2020, 1:03 pm IST
Updated : Jun 3, 2020, 1:03 pm IST

On May 21, cabinet approved additional funding of up to Rs 3 lakh crore at a concessional rate of 9.25% through ECLGS for the MSME sector

 PSBs disburse Rs 3,893 cr loans to MSMEs under Emergency Credit Line Guarantee Scheme. (PTI Photo)
  PSBs disburse Rs 3,893 cr loans to MSMEs under Emergency Credit Line Guarantee Scheme. (PTI Photo)

New Delhi: The Finance Ministry on Wednesday said that public sector banks (PSBs) have disbursed Rs 3,892.78 crore in the first two days of the month under the Rs 3-lakh crore Emergency Credit Line Guarantee Scheme (ECLGS) for the MSME sector hit hard by the coronavirus-induced lockdown.

Meanwhile, PSBs have sanctioned loans worth Rs 10,361.75 crore under the 100 per cent ECLGS starting June 1.

The scheme is the biggest fiscal component of the Rs 20-lakh crore Aatmanirbhar Bharat Abhiyan package announced by Finance Minister Nirmala Sitharaman last month.

"Public sector banks have already sanctioned loans worth Rs 10,361.75 crore under the 100 per cent Emergency Credit Line Guarantee Scheme. Out of this, Rs 3,892.78 crore has already been disbursed," Finance Minister Nirmala Sitharaman said in a tweet.

Micro, small and medium enterprises (MSMEs) are the backbone of the economy. “Under #AatmaNirbharBharat Abhiyan Govt is committed to their growth. Reach out @DFSforMSMEs for all queries regarding ECLGS/other measures and their swift resolution,” a tweet from the Department of Financial Services said.

On May 21, the cabinet had approved additional funding of up to Rs 3 lakh crore at a concessional rate of 9.25 per cent through ECLGS for the MSME sector.

Under the scheme, 100 per cent guarantee coverage will be provided by National Credit Guarantee Trustee Company (NCGTC) for additional funding of up to Rs 3 lakh crore to eligible MSMEs and interested Micro Units Development and Refinance Agency (MUDRA) borrowers, in the form of a guaranteed emergency credit line (GECL) facility.

For this purpose, a corpus of Rs 41,600 crore was provided by the government spread over the current and the next three financial years.

The scheme would be applicable to all loans sanctioned under GECL facility during the period from the date of announcement of the scheme to October 31 or till an amount of Rs 3 lakh crore is sanctioned under GECL, whichever is earlier.

The main objective of the scheme is to provide an incentive to member lending institutions to increase access to, and enable availability of additional funding facility to MSME borrowers, in view of the economic distress caused by the COVID-19 crisis, by providing them 100 per cent guarantee for any losses suffered by them due to non-repayment of the GECL funding by borrowers.

All MSME borrower accounts with an outstanding credit of up to Rs 25 crore as on February 29, which were less than or equal to 60 days past due as on that date, i.e., regular, SMA-0 and SMA-1 accounts, and with an annual turnover of up to Rs 100 crore, would be eligible for GECL funding under the scheme.

Tags: finance ministry, public sector banks (psbs), emergency credit line guarantee scheme (eclgs), msme sector, coronavirus lockdown
Location: India, Delhi, New Delhi