MSME loans: disbursements exceed Rs 1 lakh crore, Ministry of Finance says

As of August 18, public sector banks (PSBs) authorized loans of Rs 76,044 crore under the program, of which Rs 56,483 crore has been disbursed.

Bank loan disbursements to most MSMEs under the Emergency Credit Line Guarantee Program (ECLGS) have exceeded Rs 1 crore since its rollout on June 1, while sanctioned credit stood at at over Rs 1.5 lakh crore, the finance ministry said on Thursday, highlighting the success of the program.

As of August 18, public sector banks (PSBs) authorized loans of Rs 76,044 crore under the program, of which Rs 56,483 crore has been disbursed. Likewise, private banks have disbursed Rs 45,762 crore, on sanctioned loans of Rs 74,715 crore, the ministry said.

Under ECGLS, announced as part of the government’s Rs 21 lakh-crore aid package in May, the Center pledged to guarantee up to 20% of additional working capital loans without guaranteed, subject to an aggregate limit of 3 lakh crore of Rs. While the program was initially intended only for MSMEs, the government decided earlier this month to relax the eligibility criteria to cover professionals and allow more businesses to benefit.

Unsurprisingly, SBI led the pack of state-run lenders with a disbursement of Rs 17,095 crore, followed by Punjab National Bank (Rs 7,197 crore), Canara Bank (Rs 6,556 crore) and the Bank of Baroda (Rs 5,937 crore). The states that witnessed most of the PSB disbursements were Maharashtra (Rs 6,007 crore), Tamil Nadu (Rs 5,694 crore), Uttar Pradesh (Rs 5,554 crore), Gujarat (Rs 5,159 crore) Rs) and Karnataka (Rs 3,590 crore).

The ministry also said that, to mitigate the blows of Covid to farmers, 1.22 crore of Kisan credit cards were sanctioned as part of a special saturation campaign, with a total credit limit of Rs 1,02065. crore. “This will greatly help revive the rural economy and accelerate agricultural growth,” the ministry said.

When announcing the Aatma Nirbhar Bharat package, the government declared a concessional credit of Rs 2 lakh crore, which is expected to benefit 2.5 crore farmers, including fishermen and dairy farmers.

Farmers who take out loans through the KCC card are also eligible for crop insurance coverage. No collateral is required for loans up to Rs 1.6 lakh from SBI. This campaign has given a boost to kharif plantings, which usually start from June, with the onset of seasonal monsoon showers.

As for the ECGLS, after broadening its scope in August, the government estimated that additional beneficiaries could be granted guaranteed loans of around Rs a lakh crore, although there is no revision of the overall credit limit of the program (Rs three lakh crore).

As part of its expanded coverage, companies with an annual turnover limit of up to Rs 250 crore are now eligible to operate the program, up from that of Rs 100 crore earlier, in accordance with the revised definition of MSMEs. . Even individuals such as doctors, accountants, lawyers, etc. who wish to take out loans for professional purposes are now covered by the scheme.

Likewise, eligible businesses with up to Rs 50 crore in circulation as of February 29, instead of Rs 25 crore earlier, can qualify for additional secured loans. The government has allocated a corpus of Rs 41,600 crore during the current fiscal year and the next three fiscal years for the implementation of ECGLS. Up to 45 lakh units can benefit from the program, according to a government estimate.

Get live stock quotes for BSE, NSE, US market and latest net asset value, mutual fund portfolio, see the latest IPO news, top IPOs, calculate your tax Using the income tax calculator, know the best winners, the best losers and the best equity funds in the market. Like us on Facebook and follow us on Twitter.

Financial Express is now on Telegram. Click here to join our channel and stay up to date with the latest news and updates from Biz.

Previous This technology "for sure" could be added to the army's next generation squad weapon
Next AFC guarantees six direct places for 2023 FIFA Women's World Cup

No Comment

Leave a reply

Your email address will not be published. Required fields are marked *