The banks have sanctioned loans of Rs 1,87,579 crore to 50 lakh business units under the Rs 3 lakh crore Emergency Credit Line Guarantee Scheme (ECLGS) for the MSME sector, says the Finance Ministry.
This is the biggest fiscal component of the Rs 20 lakh crore Aatmanirbhar Bharat Abhiyan package which was announced in May to soften the negative impact brought about by the COVID-19 nationwide lockdown. Under this package, micro, small and medium enterprises (MSMEs) were provided credit.
Finance Minister Nirmala Sitharaman took to microblogging platform Twitter to point out that as of October 5 2020, the total amount sanctioned under the 100 per cent ECLGS by #PSBs, private banks & NBFCs to #MSMEs & individuals stands at Rs 1,87,579 cr, of which Rs 1,36,140 cr has already been disbursed. Sitharaman said the loan amounts sanctioned by the PSBs increased to Rs 81,648.82 crore, of which Rs 68,814.43 crore has been disbursed as of October 5. “The ambit of the scheme was expanded to include MSMEs with turnover of up to Rs 250 crore and individuals for business purposes. As of October 5 2020, Rs 17,460 crore of loans to individuals have been sanctioned,” she said. Of this Rs 5,939 crore has been disbursed. The minister also said about 33 stranded housing projects with investment of Rs 4,197 crore were given final approval under the Special Window for Affordable & Mid Income Housing Fund (SWAMIH) scheme.
123 projects have been sanctioned, with an investment of Rs 12,079 crore that would provide relief to 81,308 homeowners. The Cabinet, on May 20, had approved additional funding of up to Rs 3 lakh crore at a concessional rate of 9.25 per cent through ECLGS for MSME sectors. Sitharaman explained that 100 per cent guarantee coverage will be provided by the National Credit Guarantee Trustee Company (NCGTC) for additional funding of up to Rs 3 lakh crore to eligible MSMEs and interested Micro Units Development and Refinance Agency (MUDRA) borrowers in the form of a guaranteed emergency credit line (GECL) facility.