Banks have sanctioned loans worth over Rs 79,000 crore so far under ECLGS
Public and Private Sectors banks have sanctioned loans worth over Rs 79,000 crore rupees so far under Emergency Credit Line Guarantee Scheme (ECLGS). Out of which more than Rs 35,000 crore has already been disbursed.
The top lenders under the Scheme are SBI, HDFC Bank, Bank of Baroda, Punjab National Bank and Canara Bank.
The Ministry of Finance in a tweet has said that Government Schemes for #MSMEs & #NBFCs are creating significant impact.
Government Schemes for #MSMEs & #NBFCs creating significant impact
— Ministry of Finance (@FinMinIndia) June 23, 2020
✅Sanctions under #ECLGS cross Rs. 79,000 cr
✅More than Rs 35,000 cr already disbursed. 1/5#AatmaNirbharBharatPackage
Read More➡️https://t.co/puOOGJCDEF@nsitharamanoffc @Anurag_Office @minmsme @DFS_India
Emergency Credit Line Guarantee Scheme (ECLGS)
The Scheme was launched as part of the Aatmanirbhar (Self-Reliant) package by the Government to provide relief to the MSME sector and small businesses by incentivizing member lending institutions to provide additional credit of up to Rs 3 lakh crore at low interest to enable MSME to meet their operational requirements during Covid-19 crisis. Such enterprises were eligible to receive up to 20 per cent of their existing borrowing as additional loans at interest rates which were capped.
It was unveiled as part of the Rs 20 lakh crore comprehensive package announced by Finance Ministry on 13/05/2020, to aid Micro, Small and Medium Enterprises (MSMEs) sector because of the economic distress caused by the COVID-19 pandemic.
Finance Ministry said, the interventions by Government for Micro, Small and Medium Enterprises, MSMEs, have been gaining rapid traction. The Ministry said this has helped 19 lakh MSMEs and other businesses restart their businesses post the lockdown.
Under RBI's Special Liquidity Facility announced in Mar-Apr, 2020, SIBDI has sanctioned over Rs 10,220 crore to NBFCs, Micro Finance Institutions & Banks for lending to MSME & small borrowers.
National Housing Bank (NHB) has sanctioned its entire facility of Rs 10,000 crore to Housing Finance Companies. The refinance by SIDBI & NHB is in addition to ongoing schemes through, which over Rs 30,000 crore has been sanctioned.
NBFCs & MFIs are being further helped under Extended Partial Guarantee Scheme where approvals have crossed Rs 5,500 crore. Transactions for another Rs 5,000 crore are under process of approval while certain other deals are currently under negotiation.