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Banks sanction Rs 79,000 crore loans under Credit Guarantee scheme; Rs 35,000 crore disbursed

As part of the Aatma Nirbhar Bharat (Self-reliant India) package, the government had last month announced its plan for Rs 3 lakh crore as additional credit to MSMEs and small businesses

twitter-logoPTI | June 23, 2020 | Updated 19:38 IST
Banks sanction Rs 79,000 crore loans under Credit Guarantee scheme; Rs 35,000 crore disbursed
These loans have helped 19 lakh MSMEs & other businesses restart their businesses

Banks have sanctioned loans of over Rs 79,000 crore till June 20 to 19 lakh MSMEs and other businesses, of which Rs 35,000 crore has already been disbursed, the Finance Ministry said on Tuesday.

As part of the Aatma Nirbhar Bharat (Self-reliant India) package, the government had last month announced its plan for Rs 3 lakh crore as additional credit to MSMEs and small businesses. Such enterprises were eligible to receive up to 20 per cent of their existing borrowing as additional loans at interest rates which were capped.

" The interventions by Government for MSMEs, have been gaining rapid traction. Under the Emergency Credit Line backed by a Government guarantee, Banks from public and private sectors have so far already sanctioned loans worth over Rs 79,000 crore as of June 20, 2020, of which more than Rs 35,000 crore has already been disbursed," the ministry said in a statement.

The top lenders under the Scheme are SBI, HDFC Bank, Bank of Baroda, PNB and Canara Bank.

This has helped 19 lakh MSMEs & other businesses restart their businesses post the lockdown, it added.

Separately, under RBI's Special Liquidity Facility announced in March-April, 2020, SIDBI has sanctioned over Rs 10,220 crore to NBFCs, Micro Finance Institutions and banks for lending to MSME & small borrowers, the ministry said.

National Housing Bank (NHB) has sanctioned its entire facility of Rs 10,000 crore to housing finance companies.

This refinance by SIDBI and NHB is in addition to ongoing schemes through which over Rs 30,000 crore has been sanctioned.

Under the Extended Partial Guarantee Scheme for NBFCs and MFI, approvals have crossed Rs 5,500 crore. Transactions for another Rs 5,000 crore are under process of approval, while certain other deals are currently under negotiation, the ministry added.

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

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