Over Rs 1,109 cr sanctioned to MSMEs under Emergency Credit Line Guarantee Scheme: FinMin

Finance Minister Nirmala Sitharaman's office said on Tuesday that as of June 8, 2020, the Public Sector Banks (PSBs) have sanctioned loans worth Rs 1,109.03 crore to the MSME (Micro, Small & Medium Enterprises) hubs in 12 states under the Centre's 100 per cent Emergency Credit Line Guarantee Scheme (ECLGS).

The information tweeted by the minister's office added that out of the said amount (Rs 1,109.03 crore), Rs 599.12 crore has already been disbursed to 17,904 accounts.

The highest amount has been sanctioned to 2,430 MSME hubs in Surat, Gujarat, for Rs 18,329.01 crore.

Also Read: COVID Emergency Credit Facility for all businesses, not just MSMEs, clarifies FM Sitharaman

The much talked about ECLGS scheme was announced by FM Sitharaman on May 13 as a specific response to the unprecedented COVID-19 crisis, seeking to help the MSME businesses by providing them collateral-free loans of up to Rs 3 lakh crore backed by a government guarantee.

According to the scheme, all eligible MSMEs, or businesses, get a pre-approved sanction limit of up to 20% of the loan outstanding up to Rs 25 crore as on February 29th, 2020, in the form of additional working capital term loan facility in case of banks and additional term loan in case of NBGCs.

The loans extended to MSMEs under this scheme by banks and NBFCs would be 100% backed by the National Credit Guarantee Trustee Company (NCGTC).

Also Read: Coronavirus crisis: PSBs sanction loans worth Rs 17,705 crore to small businesses, says FinMin

Also Read: 1.5 lakh MSMEs utilise Rs 13,500 crore of govt's credit line in 10 days