April 20, 2024

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Delighting finance buffs

Banks disbursed Rs 75,426 crore to coronavirus-hit MSME sector

The Finance Ministry has put out data on loans disbursed under the Rs 3 lakh crore Emergency Credit Line Guarantee Scheme (ECLGS) for the MSME sector, hit hard by the coronavirus-induced lockdown.

According to ministry data, cumulatively public and private sector banks have disbursed Rs 75,426 crore under 100{b1ee4ac4d8d7b8e1af61a560a11ca52574b8103b547ccac8037ce0cdf9e7ba58} Emergency Credit Line Guarantee Scheme.

The scheme is the biggest fiscal component of the Rs 20-lakh crore Self-Reliant India Mission package announced by Finance Minister Nirmala Sitharaman last month.

Business units of Tamil Nadu have got the highest cumulative disbursement of Rs 2,625 crore from the banks. It is followed by Maharashtra businesses, which have received a disbursement of Rs 1,883 crore.

State Bank of India (SBI) has sanctioned Rs 16,234 crore, while more than half at Rs 10,960 crore has been disbursed. The SBI is followed by Bank of Baroda which has sanctioned loans worth Rs 5,666 crore, but only Rs 1,719 crore has been disbursed so far.

Canara Bank has a better disbursement rate as against sanction of Rs 4,171 crore, the lender has disbursed Rs 2,132 crore.

The 20-lakh crore package, called the Atma Nirbhar Package, was announced by Prime Minister Narendra Modi on May 12. Over the next week, Finance Minister Nirmala Sitharaman held a series of press conferences to release details of the package, aimed at reviving the Indian Economy from the slowdown and make India self-reliant.

The Rs 3 lakh crore Emergency Credit Line Guarantee Scheme (ECLGS) for the MSME sector was approved by the Union Cabinet on May 21.

Under the scheme, 100 per cent guarantee coverage is provided by 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.

The MSME units and MUDRA borrowers can avail the funding at a concessional rate of 9.25 per cent.

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