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Banks sanction over Rs 75,400 crore of loans to MSMEs under credit guarantee scheme

Nirmala Sitharaman on Monday that the total amount sanctioned under the 100% Emergency Credit Line Guarantee Scheme by PSBs and private banks stands at Rs 75,426.39 crore, out of which Rs 32,894.86 crore has already been disbursed

twitter-logoBusinessToday.In | June 23, 2020 | Updated 09:00 IST
Banks sanction over Rs 75,400 crore of loans to MSMEs under credit guarantee scheme
Atma Nirbhar Bharat: Banks sanction Rs 75,426 crore for MSMEs

The Finance Ministry has released data on the loans sanctioned under the Rs 3 lakh crore Emergency Credit Line Guarantee Scheme (ECLGS) for the MSME sector. The ministry said that public and private sector banks have cumulatively sanctioned Rs 75,426 crore under the scheme. The sector has been hit hard by the coronavirus pandemic.

Nirmala Sitharaman said in a tweet on Monday, "The total amount sanctioned under the 100% Emergency Credit Line Guarantee Scheme by PSBs and private banks stands at Rs 75,426.39 crore, of which Rs 32,894.86 crore has already been disbursed."

She said that out of the Rs 75,426 crore, Rs 42,739.12 crore have been sanctioned by PSBs while private banks sanctioned Rs 32,687.27 crore. PSBs have disbursed Rs 22,197.54 crore, while private banks have disbursed Rs 10,697.33 crore.

The ECLGS is the biggest fiscal component of the Rs 20 lakh crore stimulus package announced to mitigate the impact of the coronavirus pandemic.

When it comes to banks, State Bank of India has sanctioned Rs 16,234 crore and disbursed Rs 10,960 crore so far. Bank of Baroda has sanctioned Rs 5,666 crore and disbursed Rs 1,719 crore so far. Punjab National Bank has sanctioned Rs 4,800 crore and disbursed Rs 1,493 crore. Canara Bank has sanctioned Rs 4,171 crore and disbursed Rs 2,132 crore so far.

Also read: Save MSMEs campaign! Easier access to Rs 3 lakh crore loan scheme, GST rebate among top demands

Tamil Nadu has received the highest cumulative disbursement of Rs 2,625 crore, followed by Maharashtra at Rs 1,883 crore and Gujarat at Rs 1,739 crore. The highest amount has been sanctioned for Gujarat at Rs 4,309 crore, followed by Maharashtra at Rs 4,146 crore and Tamil Nadu at Rs 4,144.50 crore.

Under the ECLGS 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 MUDRA borrowers. 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 on May 21.

Also read: Don't boycott China, say MSMEs! Input cost will shoot 40%

Also read: MSME credit guarantee scheme suffers as banks fear NPAs

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