The Ministry of Finance said on Monday that banks had sanctioned loans of around Rs1,61,017 crore under the Rs.3-lakh emergency credit line guarantee program (ECLGS) for the MSME sector. reeling from the slowdown caused by the coronavirus pandemic.
However, disbursements in this regard amounted to Rs. 13,713 lakh crore until September 3.
The program is the largest fiscal component of the Rs 20 lakh crore Aatmanirbhar Bharat Abhiyan package announced by Finance Minister Nirmala Sitharaman in May to alleviate the distress caused by the lockdown due to COVID-19 by providing credits to different sectors, especially micro, small and medium enterprises (MSMEs).
The latest ECGLS figures, released by the Ministry of Finance, include disbursements from 12 public sector banks (PSBs), 24 private sector banks, and 31 non-bank financial corporations (NBFCs).
“As of September 3, 2020, the total amount sanctioned under the program to guarantee 100% emergency credit lines by #PSBs and private banks amounts to Rs. 1 61 017.68 crore, of which 1 Rs. 13,713.15 crore have already been disbursed, ”the finance minister said. said in a tweet.
PSB-sanctioned loan amounts increased to Rs 78,067.21 crore, of which Rs 62,025.79 crore was disbursed as of September 3, she said.
At the same time, private sector banks sanctioned Rs 82,950 crore in loans and disbursed Rs 51,687 crore.
“Compared to August 24, 2020, there is an increase of Rs 5,022.06 crore in the cumulative amount of sanctioned loans and an increase of Rs 7,786.16 crore in the cumulative amount of loans disbursed by #PSB and private sector banks combined as of 03 September 2020, “Sitharaman said.
Market leader SBI sanctioned Rs 24,388 crore in loans and disbursed Rs 18,971 crore.
It is followed by the Punjab National Bank, which sanctioned Rs 10,511 crore. However, its disbursements stood at Rs 8,264 crore as of September 3.
On May 20, Cabinet approved additional funding of up to Rs 3 lakh crore at a concessional rate of 9.25% through ECGLS for the MSME sector.
Under this program, 100% guarantee coverage will be provided by the National Credit Guarantee Trustee Company (NCGTC) for additional funding of up to Rs 3 lakh crore to eligible MSMEs and interested borrowers from the Agency. development and refinancing of micro-units (MUDRA) in the form of a guaranteed emergency credit line (GECL).
To this end, a corpus of Rs 41,600 crore has been put in place by the government, spread over the current fiscal year and the next three fiscal years.
The scheme will be applicable to all loans sanctioned under the GECL facility during the period from the date of the scheme’s announcement to October 31 or until the amount of Rs 3 lakh crore is sanctioned under the GECL, whichever comes first.