New Delhi, July 7
The finance ministry on Tuesday stated banks have sanctioned loans of about Rs 1,14,502 crore underneath the Rs 3-lakh crore Emergency Credit Line Guarantee Scheme (ECLGS) for MSME sector reeling underneath the financial slowdown attributable to the COVID-19 pandemic.
However, disbursements towards this stood at Rs 56,091.18 lakh crore until July Four underneath the 100 per cent ECLGS for micro, small and medium enterprises (MSMEs).
The scheme is the largest fiscal part of the Rs 20-lakh crore ‘Aatmanirbhar Bharat Abhiyan’ bundle introduced by Finance Minister Nirmala Sitharaman in May.
The newest numbers on ECLGS, as launched by the finance ministry, comprise disbursements by all 12 public sector banks (PSBs), 20 personal sector banks and 10 non-banking monetary firms (NBFCs).
“As of 4 July 2020, the total amount sanctioned under the 100% Emergency Credit Line Guarantee Scheme by #PSBs and private banks stands at Rs 1,14,502.58 crore, of which Rs 56,091.18 crore has already been disbursed,” the finance minister stated in a tweet.
Under the ECLGS, the mortgage quantities sanctioned by PSBs elevated to Rs 65,863.63 crore, of which Rs 35,575.48 crore has been disbursed as of July 4, she stated.
At the identical time, personal sector banks have sanctioned Rs 48,638.96 crore and disbursed Rs 20,515.70 crore.
“Compared to 1 July 2020, there is an increase of Rs 4,158.51 crore in the cumulative amount of loans sanctioned and an increase of Rs 3,835.65 crore in the cumulative amount of loans disbursed, by both #PSBs and private sector banks combined as on 4 July 2020,” Sitharaman stated.
Market chief SBI has sanctioned Rs 20,628 crore of loans and disbursed Rs 13,405 crore. It is adopted by Punjab National Bank, which has sanctioned Rs 8,689 crore. However, its disbursements stood at Rs 2,595 crore as of July 4.
The enterprise items of Maharashtra have gotten the best cumulative sanction of Rs 6,856 crore from banks, whereas disbursement was to the tune of Rs 3,605 crore as of July 4.
It is adopted by Tamil Nadu, with sanction of Rs 6,616 crore loans and disbursements of Rs 3,871 crore.
On May 21, the Cabinet authorized extra funding of as much as Rs Three lakh crore at a concessional charge of 9.25 per cent by means of ECLGS for MSME sector.
Under the scheme, 100 per cent assure protection can be offered by the National Credit Guarantee Trustee Company (NCGTC) for added funding of as much as Rs Three lakh crore to eligible MSMEs and Micro Units Development and Refinance Agency (MUDRA) debtors within the type of a assured emergency credit score line (GECL) facility.
For this goal, a corpus of Rs 41,600 crore was arrange by the federal government, unfold over the present and subsequent three monetary years.
The scheme can be relevant to all loans sanctioned underneath GECL facility in the course of the interval from the date of announcement of the scheme to October 31 or until the quantity of Rs Three lakh crore is sanctioned underneath GECL, whichever is earlier.
All MSME borrower accounts with an impressive credit score of as much as Rs 25 crore as on February 29, which had been lower than or equal to 60 days overdue as on that date, i.e., common, SMA-Zero and SMA-1 accounts, and with an annual turnover of as much as Rs 100 crore are eligible for GECL funding underneath the scheme. PTI