MSMEs get 1.14 lakh crore bank loans under Emergency Credit Line Guarantee Scheme
Centre has launched Rs 3-lakh crore Emergency Credit Line Guarantee Scheme under Aatmanirbhar Bharat Abhiyan
New Delhi: The finance ministry on Tuesday said banks have sanctioned loans of about Rs 1,14,502 crore under the Rs 3-lakh crore Emergency Credit Line Guarantee Scheme (ECLGS) for MSME sector reeling under the economic slowdown caused by the Covid-19 pandemic.
However, disbursements against this stood at Rs 56,091.18 lakh crore till July 4 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), 20 private sector banks and 10 non-banking financial companies (NBFCs).
"As of 4 July 2020, the total amount sanctioned under the 100 per cent Emergency Credit Line Guarantee Scheme by #PSBs and private banks stands at Rs 1,14,502.58 crore, of which Rs 56,091.18 crore has already been disbursed," the finance minister said in a tweet. Under the ECLGS, the loan amounts sanctioned by PSBs increased to Rs 65,863.63 crore, of which Rs 35,575.48 crore has been disbursed as of July 4, she said. At the same time, private sector banks have sanctioned Rs 48,638.96 crore and disbursed Rs 20,515.70 crore.
"Compared to 1 July 2020, there is an increase of Rs 4,158.51 crore in the cumulative amount of loans sanctioned and an increase of Rs 3,835.65 crore in the cumulative amount of loans disbursed, by both #PSBs and private sector banks combined as on 4 July 2020," Sitharaman said.
Market leader SBI has sanctioned Rs 20,628 crore of loans and disbursed Rs 13,405 crore. It is followed by Punjab National Bank, which has sanctioned Rs 8,689 crore. However, its disbursements stood at Rs 2,595 crore as of July 4. The business units of Maharashtra have got the highest cumulative sanction of Rs 6,856 crore from banks, while disbursement was to the tune of Rs 3,605 crore as of July 4.