Under the Rs 3-lakh crore Emergency Credit Line Guarantee Scheme (ECLGS), public and private sectors banks have sanctioned loans worth Rs 1,27,582.60 crore to the MSMEs impacted by lockdown due to coronavirus pandemic, according to data from banks and NBFCs. Of this, Rs 77,613.06 crore has already been disbursed, which will help micro, small and medium enterprises (MSMEs) to restart their businesses post the lockdown.
"As of July 20, 2020, the total amount sanctioned under the 100 per cent Emergency Credit Line Guarantee Scheme by PSBs and private banks stands at Rs 1,27,582.60 crore, of which Rs 77,613.06 crore has already been disbursed," Finance Minister Nirmala Sitharaman's office said in a tweet on Tuesday.
Under the 'Atma Nirbhar Bharat Abhiyan', the central government aims to provide collateral-free loans worth Rs 3 lakh crore for MSMEs with turnover up to Rs 100 crore till October 31, 2020. The scheme is expected to benefit as many as 45 lakh MSMEs across the country.
As of 20 July 2020, the total amount sanctioned under the 100% Emergency Credit Line Guarantee Scheme by #PSBs and private banks stands at Rs 1,27,582.60 crore, of which Rs 77,613.06 crore has already been disbursed. Here is the break-up: #AatmanirbharBharat#MSMEspic.twitter.com/wb58453F3c- NSitharamanOffice (@nsitharamanoffc) July 21, 2020
The information tweeted by the Finance Minister's office further stated that the loan amounts sanctioned by public sector banks has risen to Rs 70,894.59 crore, of which Rs 45,797.29 crore have been disbursed as of July 20.
Meanwhile, private sector banks have sanctioned loan amounting to Rs 56,688 crore and disbursed Rs 31,815 crore.
The latest data on ECLGS include disbursements by all 12 public sector banks (PSBs), 22 private sector banks and 21 non-banking financial companies (NBFCs).
"Compared to July 15, 2020, there is an increase of Rs 4,237.44 crore in the cumulative amount of loans sanctioned and an increase of Rs 9,301.51 crore in the cumulative amount of loans disbursed, by both PSBs and private sector banks combined as on July 20, 2020," the Finance Minister's office tweeted.
State-wise, the highest amount has been sanctioned to MSMEs in Maharashtra at Rs 7,358.59 crore, of which Rs 4,785.85 crore has been disbursed.
On May 20, the Cabinet 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 the National Credit Guarantee Trustee Company for additional funding of up to Rs 3 lakh crore to eligible MSMEs and interested Micro Units Development and Refinance Agency borrowers in the form of a guaranteed emergency credit line (GECL) facility.
As per the scheme, all eligible MSMEs, or businesses, get a pre-approved sanction limit of up to 20 per cent of the loan outstanding up to Rs 25 crore as on February 29, 2020, in the form of additional working capital term loan facility in case of banks and additional term loan in case of NBFCs.
By Chitranjan Kumar