Banks sanctions about Rs 1.20 lakh crore loans to MSMEs under credit guarantee scheme
However, disbursements against this stood at Rs 61,987.90 crore till Thursday (July 9) under the 100 per cent ECLGS for micro, small and medium enterprises (MSMEs).
The scheme is the biggest fiscal component of the Rs 20-lakh crore Aatmanirbhar Bharat Abhiyan package announced by Finance Minister Nirmala Sitharaman in May.
The latest numbers on ECLGS, as released by the finance ministry, comprise disbursements by all 12 public sector banks (PSBs), 22 private sector banks and 21 non-banking financial companies (NBFCs).
"As of 9 July 2020, the total amount sanctioned under the 100 per cent Emergency Credit Line Guarantee Scheme by #PSBs and private banks stands at Rs 1,20,099.37 crore, of which Rs 61,987.90 crore has already been disbursed," the finance minister said in a tweet.
Under the ECLGS, the loan amounts sanctioned by PSBs increased to Rs 68,145.40 crore, of which Rs 38,372.88 crore has been disbursed as of July 9, she said.
At the same time, private sector banks have sanctioned Rs 51,953.97 crore and disbursed Rs 23,615.02 crore.
"Compared to 4 July 2020, there is an increase of Rs 5,596.79 crore in the cumulative amount of loans sanctioned and an increase of Rs 5,896.72 crore in the cumulative amount of loans disbursed, by both #PSBs and private sector banks combined as on 9 July 2020," Sitharaman said.
Market leader SBI has sanctioned Rs 20,788 crore of loans and disbursed Rs 13,893 crore. It is followed by Punjab National Bank, which has sanctioned Rs 8,977 crore. However, its disbursements stood at Rs 2,975 crore as of July 9.
State-wise, business units of Maharashtra have got the highest cumulative sanction of Rs 7,035 crore from public sector banks, while disbursement was to the tune of Rs 3,897 crore as of July 9.
It is followed by Tamil Nadu, with a total sanction of Rs 6,955 crore loans and disbursements of Rs 4,153 crore.
On May 21, the Cabinet approved an 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 (MUDRA) borrowers in the form of a guaranteed emergency credit line (GECL) facility.
For this purpose, a corpus of Rs 41,600 crore was set up by the government, spread over the current and the next three financial years.
The scheme will be applicable to all loans sanctioned under GECL facility during the period from the date of announcement of the scheme to October 31 or till the amount of Rs 3 lakh crore is sanctioned under GECL, whichever is earlier.All MSME borrower accounts with an outstanding credit of up to Rs 25 crore as on February 29, which were less than or equal to 60 days past due as on that date, i.e., regular, SMA-0 and SMA-1 accounts, and with an annual turnover of up to Rs 100 crore are eligible for GECL funding under the scheme. DP HRS
(This story has not been edited by Business Insider and is auto-generated from a syndicated feed we subscribe to.)
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