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Public Sector Banks (PSBs) have stepped up the efforts on the 100 per cent Emergency Credit Line Guarantee Scheme (ECLGS), sanctioning loans worth ₹32,049.86 crore and disbursed as much as ₹16,031.39 crore to MSMEs as of June 12.
Tamil Nadu continued to top the chart of States that has got the maximum sanction and disbursements in value terms, official data tweeted by the Finance Minister’s Office on Tuesday showed. As many as 98,584 accounts in Tamil Nadu got sanctions worth ₹3,342.06 crore under the ECLGS, the data showed. So far ₹2,071.89 crore has been disbursed to 52,568 accounts, it added.
After Tamil Nadu, the State that has got the maximum loan sanctions and disbursements from PSBs in value terms is Uttar Pradesh. Loan sanctions have been made to 1,24,616 accounts for an amount of ₹3,337.38 crore. The amount disbursed for MSME units in this State stood at ₹1,607.82 crore in respect of 51,576 accounts.
The other states that have seen a significant amount of loan sanctions include Gujarat (₹3,253.87 crore); Maharashtra (₹3,229.31 crore), Karnataka (₹1,910.87 crore), Andhra Pradesh (₹1, 713.40 crore) and Rajasthan (₹1,975.21 crore).
The latest data update came a day after the Finance Minister Nirmala Sitharaman chaired a meeting through Video Conferencing with major private banks and non-banking finance companies to ensure the effective roll-out of ECLGS and uninterrupted/smooth liquidity to MSMEs, which are the backbone of the Indian economy, in this challenging Covid-19 time.
As regards Bank-wise sanctions, the official data showed that maximum cumulative sanction came from the State Bank of India at ₹14,559.89 crore in respect of 1,50,344 accounts. Of this, the disbursement stood at 8,776.19 crore for 82,770 accounts.
The ECLGS scheme is a specific response to the unprecedented situation of Covid-19. It seeks to provide much-needed relief to the MSME sector by incentivising Member Lending Institutions (MLIs) to provide an 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 non-banking finance companies 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.
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