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Maharashtra has dislodged Tamil Nadu to top the chart in terms of loans sanctioned under the 100 per cent Emergency Credit Line Guarantee Scheme (ECLGS), which is focussed on supporting MSMEs in these tough Covid-19 times.
However, Tamil Nadu continues to enjoy pole position when it came to disbursals, at ₹2,251.78 crore. The State was until recently numero uno on the sanctions front, but has now been surpassed by Maharashtra and Gujarat on the sanctioned loans front in value terms.
As of June 16, PSBs have sanctioned loans worth ₹36,486.82 crore and disbursed ₹18,306.49 crore, official data tweeted by the Finance Ministry showed.
Total loans sanctioned to MSMEs in Maharashtra stood at ₹3,691.43 crore (73,579 accounts) followed by Gujarat at ₹3,676.24 crore (68,708 accounts) and Tamil Nadu at ₹3,616.11 crore (1,08,867 accounts).
The loan disbursal to MSMEs in Maharashtra and Gujarat stood at ₹1,465.39 crore and ₹1,452.04 crore, respectively.
The government is yet to make public the value of loans sanctioned by the private banks under this scheme. It may be recalled that Finance Minister Nirmala Sitharaman had recently met the representatives of private banks through video conferencing and urged them to support MSMEs through the ECLGS.
As regards bank-wise sanctions, the official data showed that maximum cumulative sanction came from State Bank of India at ₹15,317.71 crore in respect of 1,83,945 accounts. Of this, disbursement stood at ₹9,488.98 crore for 91,690 accounts.
The ECLGS scheme is a specific response to the unprecedented situation of Covid-19 and seeks to provide much needed relief to the MSME sector by incentivising member lending institutions (MLIs) to provide additional credit of up to ₹3-lakh crore at low cost, thereby enabling MSMEs to meet their operational liabilities and restart their business.
Under this scheme, loans extended to MSMEs by banks and NBFCs would be 100 per cent guaranteed by the National Credit Guarantee Trustee Company (NCGTC). The loan — which includes a moratorium for the first 12 months — will be extended in the form of additional working capital term loan facility in case of banks and additional term loan in case of NBFCs to MSMEs with turnover up to ₹100 crore till October 31, 2020 and interested Pradhan Mantri Mudra Yojana borrowers.
As many as 45 lakh MSMEs are expected to benefit from the ECLGS scheme.
ECLGS: Top league
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