Banks sanction loans worth Rs 1.77 billion to MSME 4.4 million under ECLGS program

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However, the disbursement against the sanctioned amount was 1,25,425 crore rupees for 25.74 lakh of MSME units until September 21.

The program is the largest fiscal component of the Rs 20 lakh crore Aatmanirbhar Bharat Abhiyan package announced by Finance Minister Nirmala Sitharaman in May to alleviate the distress caused by the lockdown due to COVID-19 by providing credits to different sectors, especially micro, small and medium enterprises (MSMEs).

The latest ECGLS figures, released by the Ministry of Finance, include disbursements from 12 public sector banks (PSBs), 24 private sector banks, and 31 non-bank financial corporations (NBFCs).

“As of September 21, 2020, the total amount sanctioned under the 100% emergency credit lines guarantee program by #PSBs and private banks to #MPMEs and individuals amounts to Rs 1,77,353 crore , of which Rs 1,25,425 crore has already been disbursed, ”the finance minister said in a tweet.

The scope of the program was broadened to include MSMEs with turnover of up to Rs 250 crore and individuals for business purposes in August and included some individual loans given to professionals such as doctors, lawyers and chartered accountants for business purposes.

As of September 21, 2020, rupee 9,849.74 crore of 2.8 lakh loans from individuals has been sanctioned, of which rupee 2,617.08 crore has been paid to 49,393 professionals.

To include more businesses to benefit from the program, the Ministry of Finance increased the upper limit of the outstanding loan on February 29 to be eligible for the program from Rs 25 crore to Rs 50 crore. The maximum amount of guaranteed emergency credit line (GECL) funding under the program has also been correspondingly increased from Rs 5 crore to Rs 10 crore.

“Compared to September 03, 2020, there is an increase of Rs 16 335.32 crore in the cumulative amount of sanctioned loans and an increase of Rs 11 711.85 crore in the cumulative amount of loans disbursed by the #PSB and the banks of the private sector combined as of September 21, 2020, “Sitharaman said.

PSB-sanctioned loan amounts increased to Rs 79,347.73 crore, of which Rs 65,051.89 crore was disbursed as of September 21, she said.

At the same time, private sector banks sanctioned Rs 88,155 crore in loans and disbursed Rs 57,756 crore.

Market leader SBI sanctioned Rs 24,632 crore in loans and disbursed Rs 19,748 crore. It is followed by the Punjab National Bank with a sanctioned amount of Rs 10,677 crore.

On May 20, Cabinet approved additional funding of up to Rs 3 lakh crore at a concessional rate of 9.25% through ECGLS for the MSME sector.

Under this program, 100% guarantee coverage will be provided by the National Credit Guarantee Trustee Company (NCGTC) for additional funding of up to Rs 3 lakh crore to eligible MSMEs and interested borrowers from the Agency. development and refinancing of micro-units (MUDRA) in the form of a guaranteed emergency credit line (GECL).

To this end, a corpus of Rs 41,600 crore has been put in place by the government, spread over the current fiscal year and the next three fiscal years.

The scheme will be applicable to all loans sanctioned under the GECL facility during the period from the date of the scheme’s announcement to October 31 or until the amount of Rs 3 lakh crore is sanctioned under the GECL, whichever comes first.

(Only the title and image of this report may have been reworked by Business Standard staff; the rest of the content is automatically generated from a syndicated feed.)

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