Benefitting over 30 lakh micro, small and medium businesses, over Rs 1 lakh crore worth of loans have already been sanctioned under the Emergency Credit Line Guarantee Scheme (ECLGS) backed by a 100 per cent government guarantee, a Finance Ministry official informed on Tuesday. He added that over Rs 45,000 crore worth of loans have already been disbursed by banks from public as well as private sectors.
"This would help more than 30 lakh units of MSMEs and other businesses restart their businesses post the lockdown," he said.
As per data shared by the government, Public Sector Banks (PSBs) have sanctioned loans of Rs 57,525.47 crore whereas private sector banks have sanctioned loans of Rs 44,335.52 crore under the scheme, with top lenders being SBI, Bank of Baroda, PNB, Canara Bank and HDFC.
As per the government data, maximum amount under the scheme has been disbursed in Maharashtra (Rs 6,179 crore), followed by Uttar Pradesh (Rs 5,646 crore) and Tamil Nadu (Rs 5,567 crore).
Struck by the unprecedented lockdown due to COVID-19 pandemic, the micro small and medium enterprises (MSME) sector in India was facing a question of survival when the government in a rescue mission approved a series of measures on May 20 under the ‘Aatmanirbhar Bharat Abhiyan’, including an additional funding of up to Rs 3 lakh crore through introduction of ECLGS.
Under the scheme, MSMEs borrowers with up to Rs 25 crores of outstanding credit can avail an additional credit of 20 percent of the loan outstanding from banks, NBFCs, and other financial institutions. The government would stand guarantee for this additional credit for all loans up to Rs 3 lakh crore taken till October 31.