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State Bank of India (SBI), on Tuesday, said it has sanctioned credit under the Guaranteed Emergency Credit Line Loan (GECL) aggregating to ₹15,000 crore to 1.5 lakh MSMEs (micro, small and medium enterprise) and business enterprises.
SBI said in a statement it has so far disbursed loans worth ₹8,700 crore under GECL.
According to the statement, additional supportive measures such as Covid Emergency Credit Line, re-assessment of working capital limits, and restructuring of advances are also being made available to MSME customers.
Under GECL, a fund based working capital term loan of up to 20 per cent of the entire fund based outstanding as on February 29 is sanctioned to eligible borrowers. The loan amount maximum is capped at ₹5 crore. All borrower accounts (BEs/ MSMEs) with combined outstanding loans of up to ₹25 crore as on February 29and annual turnover of up to ₹100 crore in the previous financial year (FY20) are eligible for GECL funding under the scheme.
The maximum tenor of GECL is four years from the date of disbursement. While it comes with a moratorium of 12 months for principal, interest is payable at monthly intervals. The principal has to be repaid in 36 equal instalments after the moratorium period is over. The interest rate on this loan ranges from 7.80 per cent to 9.25 per cent.
Townhall with MSMEs
To empower MSMEs in the wake of the Covid crisis, SBI said it has organised more than 125 virtual town hall meetings from May to date.
As per the directives of the Department of Financial Services (DFS), Ministry of Finance, the bank conducted circle-level meetings to reach out to MSME customers and explain the various relief measures and financial support provided to them to fight the Covid outbreak, the statement said. These meetings witnessed participants of around 3,000 MSME customers.
CS Setty, MD (Retail and Digital Banking), SBI said: “MSME being the priority sector of the Indian economy, it was important to hold these meetings to understand the concerns and handhold our customers amid the lockdown and provide them with the much needed financial aid.
“..We, along with the help of our employees, are continuously focussing on supporting MSMEs in these unprecedented times.”
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