The much talked about 100 per cent Emergency Credit Line Guarantee Scheme (ECLGS) has gathered further momentum with total loans sanctioned by 12 public sector banks, top 24 private sector banks and 31 NBFCs exceeding ₹1.86 lakh crore as of September 29. The aggregate disbursements to both non-individuals and individuals stood at ₹1.32 lakh crore.
This came out at the latest review of the Atmanirbhar Bharat package undertaken on Thursday by Finance Minister Nirmala Sitharaman as regards implementation by the Finance and Corporate Affairs Ministries.
It may be recalled that the ECLGS scheme, a specific response to the unprecedented situation of Covid-19, sought to provide much needed relief to the MSME sector by incentivising Member Lending Institutions (MLIs) to provide additional credit of upto ₹3 lakh crore at low cost, thereby enabling MSMEs to meet their operational liabilities and restart their business.
Under the 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 will be extended in the form of additional working capital term loan facility in case of banks and additional term loan in case of non-banking finance companies to MSMEs and interested Pradhan Mantri Mudra Yojana borrowers.
Credit would be upto 20 per cent of the borrower's total outstanding credit upto ₹50 crore. About 45 lakh MSMEs are expected to benefit from the scheme.
The coverage of this scheme was extended to individual loans for business after guidelines were amended in August 2020. The loan outstanding ceiling was enhanced to ₹50 crore and annual turnover ceiling to ₹250 crore. As much as ₹17,309 crore has been sanctioned for individuals and ₹5,330 crore disbursed, official data showed.
In the case of non-individuals, PSBs have sanctioned ₹80,060 crore and disbursed ₹66,849 crore. On the other hand, private sector banks have sanctioned ₹86,167 crore and disbursed ₹57,985 crore. NBFCs have sanctioned ₹2,932 crore and disbursed ₹2,083 crore, official data showed.
Meanwhile, in the ₹45,000-crore partial Credit Guarantee Scheme 2.0 for NBFCs, HFCs and MFIs to do fresh lending to MSMEs and individuals, banks have approved purchase of portfolio of ₹25,505 crore and are currently in process of approval / negotiations for ₹3,171 crore. As reported by PSBs on September 25, portfolio of ₹16,401 crore has been purchased, an official release said.
As for the ₹30,000-crore Additional Emergency Working Capital Funding for farmers through Nabard, ₹25,000 crore has been disbursed out of the special facility.