The ministry of finance on Monday said banks under the provision of Rs 3-lakh crore Emergency Credit Line Guarantee Scheme (ECLGS) for the MSME sector under stress due to the coronavirus-induced lockdown.
Banks have also sanctioned over Rs 75,000 crore loans. However, loans worth Rs 32,894.86 crore are disbursed under the 100 percent ECLGS for the micro, small and medium enterprises (MSMEs) sectors, starting June 1.
The scheme is the biggest fiscal key component of the Rs 20-lakh crore Aatmanirbhar Bharat Abhiyan package announced by Nirmala Sitharaman finance minister of India last month. “The total amount sanctioned under the 100% Emergency Credit Line Guarantee Scheme by PSBs and private banks stands at Rs 75,426.39 crore, of which Rs 32,894.86 crore has already been disbursed,” Finance Minister Sitharaman said in a tweet.
The latest number announced by the Finance Ministry comprises all 12 public sector banks (PSBs) and 16 private sector banks. “Under the 100% ECLGS, the loan amounts sanctioned by Public Sector Banks increased to Rs 42,739.12 crore, of which Rs 22,197.54 crore has been disbursed,” FM Nirmala Sitharaman said in another tweet.
In the meantime, private sector banks also sanctioned Rs 32,687.27 crore while disbursed only Rs 10,697.33 crore amount so far.
It is to be noticed that on Sunday RBI said lending institutions should assign zero percent risk weight on the credit facilities extended under the ECLGS to MSME borrowers. Also on May 21, the Cabinet had approved additional funding of up to Rs 3 lakh crore at the best concessional rate of 9.25 percent through ECLGS for the MSME sector.
All MSME borrower accounts with an outstanding or pending 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, would also be eligible for GECL funding under the scheme.