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The much talked about 100 per cent Emergency Credit Line Guarantee Scheme (ECLGS) to support MSMEs in these troubled Covid-19 times has got off to a flying start with public sector banks already sanctioning loans worth ₹10,361.75 crore.
These banks have till date disbursed ₹3,892.78 crore under this scheme, the Finance Minister's office tweeted on Wednesday.
This scheme, which is a specific response to the unprecedented situation of Covid-19, seeks 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 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 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 ₹25 crore, excluding off balance sheet and non fund based exposures as on February 29, i.e additional credit of upto ₹5 crore.
PMJDY WOMEN
Meanwhile, Finance Ministry has said that it had disbursed as much as ₹10,315 crore to 20.63 crore women Pradhan Mantri Jan Dhan Yojana ( PMJDY) account holders towards the second instalment (May). It may be recalled that the ₹10,029 crore was credited under the first instalment (April) to 20.05 crore women PMJDY beneficiaries.
This initiative of crediting ₹500 in each of the months of April, May and June to PMJDY women beneficiaries formed part of the ₹1.7 lakh crorr Pradhan Mantri Garib Kalyan Package 2020 ( PMGKY) that was rolled out by the Finance Minister Nirmala Sitharaman on March 26 to protect weaker and most vulnerable sections of the society from the impact of Covid-19 induced lockdown.
As many as 42 crore beneficiaries have been directly given cash support through Direct Benefit Transfer ( DBT) amounting to ₹53,248 crore under PMGKP till June 2, the Finance Ministry said on Wednesday.
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