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Banks sanction loans of Rs 1.61 lakh cr to MSMEs below credit score assure scheme

New Delhi: The Finance Ministry on Monday mentioned banks have sanctioned loans of about Rs 1,61,017 crore below the Rs 3-lakh crore Emergency Credit Line Guarantee Scheme (ECLGS) for the MSME sector reeling below the slowdown brought on by the coronavirus pandemic.

However, disbursements towards this stood at Rs 1,13,713 lakh crore until September 3.

The scheme is the most important fiscal part of the Rs 20-lakh crore Aatmanirbhar Bharat Abhiyan package deal introduced by Finance Minister Nirmala Sitharaman in May to mitigate the misery brought on by lockdown on account of COVID-19 by offering credit score to totally different sectors, particularly micro, small and medium enterprises (MSMEs).

The newest numbers on ECLGS, as launched by the finance ministry, comprise disbursements by all 12 public sector banks (PSBs), 24 personal sector banks and 31 non-banking monetary firms (NBFCs).

“As of 3 Sept 2020, the total amount sanctioned under the 100% Emergency Credit Line Guarantee Scheme by #PSBs and private banks stands at Rs 1,61,017.68 crore, of which Rs 1,13,713.15 crore has already been disbursed,” the finance minister mentioned in a tweet.

The mortgage quantities sanctioned by PSBs elevated to Rs 78,067.21 crore, of which Rs 62,025.79 crore has been disbursed as of September 3, she mentioned.

At the identical time, personal sector banks have sanctioned Rs 82,950 crore of loans and disbursed Rs 51,687 crore.

“Compared to 24 Aug 2020, there is an increase of Rs 5,022.06 crore in the cumulative amount of loans sanctioned & an increase of Rs 7,786.16 crore in the cumulative amount of loans disbursed by both #PSBs and private sector banks combined as on 03 Sept 2020,” Sitharaman mentioned.

Market chief SBI has sanctioned Rs 24,388 crore of loans and disbursed Rs 18,971 crore.

It is adopted by Punjab National Bank, which has sanctioned Rs 10,511 crore. However, its disbursements stood at Rs 8,264 crore as of September 3.

On May 20, the Cabinet authorised further funding of as much as Rs 3 lakh crore at a concessional price of 9.25 per cent by way of ECLGS for MSME sector.

Under the scheme, 100 per cent assure protection might be offered by the National Credit Guarantee Trustee Company (NCGTC) for added funding of as much as Rs 3 lakh crore to eligible MSMEs and Micro Units Development and Refinance Agency (MUDRA) debtors within the type of a assured emergency credit score line (GECL) facility.

For this objective, a corpus of Rs 41,600 crore was arrange by the federal government, unfold over the present and subsequent three monetary years.

The scheme might be relevant to all loans sanctioned below GECL facility through the interval from the date of announcement of the scheme to October 31 or until the quantity of Rs 3 lakh crore is sanctioned below GECL, whichever is earlier.

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