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HomeUncategorizedBanks Sanctioned Rs 1.27 Lakh Crore worth Loans for MSMEs Impacted by...

Banks Sanctioned Rs 1.27 Lakh Crore worth Loans for MSMEs Impacted by Covid-19

All Micro, Small and Medium Enterprises (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, ie, regular, SMA-0 and SMA-1 accounts, and with an annual turnover of up to Rs 100 crore are eligible for Guaranteed Emergency Credit Line (GECL) funding under the scheme), reports PTI.

The finance ministry has said banks have sanctioned loans worth about Rs 1,27,582 crore under the Rs 3-lakh crore Emergency Credit Line Guarantee Scheme (ECLGS) for the MSME sector impacted by the economic slowdown triggered by Covid-19. However, disbursements against this stood at Rs 77,613 crore till July 20 under the 100% ECLGS for 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).

The finance ministry on Tuesday said banks have sanctioned loans worth about Rs 1,27,582 crore under the Rs 3-lakh crore Emergency Credit Line Guarantee Scheme (ECLGS) for the MSME sector impacted by the economic slowdown triggered by COVID-19. However, disbursements against this stood at Rs 77,613 crore till July 20 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).

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