The Finance Ministry on Thursday said, under the Rs 3-lakh crore Emergency Credit Line Guarantee Scheme (ECLGS) approved on May 20 for the MSME sector impacted by the coronavirus pandemic banks at a concessional rate of 9.25% have sanctioned loans of about Rs 1,87,579 crore to 50.7 lakh business unit. A collective disbursement of INR 1,36,140 crore has been done to 27 lakh MSME units till October 5. The ECLGS is to ease the distress caused by lockdown due to COVID-19 by providing credit to different sectors, especially micro, small and medium enterprises (MSMEs) under the PM Aatmanirbhar bharat scheme.
"As of 5 Oct 2020, the total amount sanctioned under the 100% Emergency Credit Line Guarantee Scheme by PSBs, private banks & NBFCs to MSMEs & individuals stands at Rs 1,87,579 cr, of which Rs 1,36,140 cr has already been disbursed," the finance minister tweeted. Of the loan amount Rs.81,648.82 crore, Rs 86,576 crore, Rs 3,032 crore sanctioned by PSBs, Private sector banks, NBFCs respectively, has made disbursement of Rs 68,814.43, Rs 59,740 crore, Rs 2,227 crore."The ambit of the Scheme was expanded to include MSMEs with turnover of up to Rs 250 crore & individuals for business purposes. As of 05 Oct 2020, Rs 17,460 crore of loans to individuals has been sanctioned, of which Rs 5,939 crore has been disbursed," she said.
On submission of 100 per cent guarantee coverage by the National Credit Guarantee Trustee Company (NCGTC) an additional funding of up to Rs 3 lakh crore to eligible MSMEs and interested Micro Units Development and Refinance Agency (MUDRA) borrowers in the form of a guaranteed emergency credit line (GECL) facility can be made. The government has set up an aggregated amount of Rs 41,600 crore, spread over the current and next three financial years. The scheme will be valid to all loans approved under GECL facility from May 20 to October 31 or till the amount of Rs 3 lakh crore is sanctioned under GECL, whichever is earlier.
Also Read:
Swiggy Signs MoU with Govt to help Street Vendors
'Let us make India a Country the world looks upon' Piyush Goyal
