The public sector banks have sanctioned Rs 8,320 crore till June 5 under the Rs 3-lakh crore Emergency Credit Line Guarantee Scheme(ECLGS) for the MSME sector, affected poorly due to lockdown amid coronavirus, said the Finance Ministry on Sunday.
Loans worth 17,705.64 crores under the 100% ECLGS have been disbursed by the PSBs starting June 1.
The scheme is the greatest monetary segment of the Rs 20-lakh crore Self-Reliant India Mission package announced by FM Nirmala Sitharaman a month ago.
“As of 5 June 2020, PSBs have sanctioned loans worth Rs 17,705.64 crore under the 100 percent Emergency Credit Line Guarantee Scheme, out of which Rs 8320.24 crore have been disbursed,” Sitharaman said in a tweet.
State Bank of India (SBI), the nation’s biggest moneylender has authorized Rs 11,701 crore, while the payment was about half at Rs 6,084.71 crore toward the finish of June 5.
It is trailed by Punjab National Bank (PNB) with authorization of Rs 1,295.59, however, payment was short of what one-fifth at Rs 242.92 crore.
On May 21, the Cabinet had endorsed extra financing of up to Rs 3 lakh crore at a concessional pace of 9.25 percent through ECLGS for the MSME area.
Under the plan, 100% guarantee coverage will be given by National Credit Guarantee Trustee Company (NCGTC) for extra financing of up to Rs 3 lakh crore to qualified MSMEs and interested Micro Units Development and Refinance Agency (MUDRA) borrowers, as a guaranteed emergency credit line (GECL) office.
For this reason, a corpus of Rs 41,600 crore was given by the government, spread over the present and next three monetary years.
The plan will be pertinent to all loans endorsed under the emergency credit line office during the period from the date of declaration of the plan to October 31 or work a measure of Rs 3 lakh crore is authorized under GECL, whichever is prior.
The fundamental target of the plan is to give incentive to member loaning foundations to expand get to and empower accessibility of extra subsidizing facility to MSME borrowers, considering the financial misery brought about by the COVID-19 emergency, by giving them 100 percent ensure for any misfortunes endured by them due to non-reimbursement of the GECL financing by borrowers.
All MSME borrower accounts with an outstanding credit of up to Rs 25 crore as of February 29, which were not exactly or equivalent to 60 days past due as on that date, i.e., customary, SMA-0 and SMA-1 records, and with a yearly turnover of up to Rs 100 crore, would be qualified for funding under the emergency credit line scheme.
The Finance Minister later had released further data regarding the ECLGS and stated that the disbursement comprises all 12 public sector banks (PSBs), 24 private sector banks, and 31 non-banking financial companies (NBFCs). She mentioned that the PSBs and private banks have sanctioned a total loan amount of Rs. 1,61,017.68 crore and even disbursed Rs. 1,13,713.15 crore as of September 03, 2020.
Comparing the figures to August 24, 2020, Sitharam also stated that there has been an increase of Rs. 5,022.06 crore sanctioned and of Rs. 7,786.16 crore disbursed in the cumulative amount of loans.
SBI has also sanctioned Rs 24,388 crore of loans and disbursed Rs 18,971 crore.