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First Bunch Of Loans Under The New MSME Plan Released

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First Bunch Of Loans Under The New MSME Plan Released
Aparajita Gupta - 11 June 2020

New Delhi, June 11: The government on Thursday said the Public Sector Banks (PSBs) have released a total of Rs 12,200.65 crore till June 9, under the Rs 3-lakh crore Emergency Credit Line Guarantee Scheme (ECLGS) for the MSME sector.

The MSME suffered most due to the coronavirus-induced nationwide lockdown.

“As of 9 June 2020, PSBs have sanctioned loans worth Rs 24,260.65 crore under the 100 per cent Emergency Credit Line Guarantee Scheme, out of which Rs 12,200.65 crore have been disbursed,” Finance Minister Nirmala Sitharaman said in a tweet on Thursday.

This scheme has the biggest financial component of the Rs 20-lakh crore Self-Reliant India Mission package announced by Sitharaman in May.

Tamil Nadu’s business units have got the highest cumulative sanction of Rs 2,637 crore, while Rs 1,727 crore was disbursed till June 9. It is followed by Uttar Pradesh with a sanction of Rs 2,547 crore, with a disbursed amount of Rs 1,225 crore.

Bank wise, country’s biggest public sector lender State Bank of India (SBI) has a cumulative sanction of Rs 13,363 crore, while disbursement was to the tune of Rs 7,517 crore at the end of June 9.

Country’s third largest lender Bank of Baroda followed SBI with a cumulative sanction of Rs 1,893 crore, and disbursement of Rs 526 crore.

Mumbai-based Union Bank of India has sanctioned Rs 1,842 crore and disbursed Rs 794 crore till June 9.

Country’s second largest PSB Punjab National Bank has a cumulative sanction of Rs 1,772 crore but it has so far disbursed only Rs 656 crore.
The Cabinet on May 21 had approved additional funding of up to Rs 3 lakh crore at a concessional rate of 9.25 per cent through ECLGS for the MSME sector.

Under the scheme, 100 per cent guarantee coverage will be provided by National Credit Guarantee Trustee Company for additional funding of up to Rs 3 lakh crore to eligible MSMEs and interested Micro Units Development and Refinance Agency borrowers, in the form of a guaranteed emergency credit line facility.

A corpus of Rs 41,600 crore was provided by the government for this purpose, spread over the current and next three financial years.

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