Banks sanction additional Rs 15,571 cr to MSMEs under ECLGS 2.0

Banks have sanctioned an additional Rs 15,571 crore under the Emergency Credit Line Guarantee Scheme (ECLGS) to MSMEs that were impacted by the coronavirus pandemic, the finance ministry said on Wednesday.

In a tweet, the ministry said the government announced ECLGS 1.0 to provide financial support to MSMEs and ECLGS 2.0 to guarantee credit support for stressed sectors.

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"Additional Credit amounting to Rs 15,571 crore sanctioned to 2772 borrowers while Rs 3,344 crore disbursed to 1,188 borrowers," it said.

This data has been provided by 12 public sector banks, top 24 private sector banks and 31 NBFCs as on January 8.

With this, total sanctioned amount under ECLGS 1.0 and 2.0 has increased to Rs 2.14 lakh crore and 90.57 lakh MSMEs have benefited from this.

Of this, Rs 1.65 lakh crore has been disbursed to 42.46 lakh MSMEs as on January 8, 2021.

Announcing the Aatmanirbhar Bharat Package 3.0 in November, Finance Minister Nirmala Sitharaman had said that Rs 2.05 lakh crore has been sanctioned and Rs 1.52 lakh crore disbursed under ECLGS 1.0 since its launch.

As part of the Aatmanirbhar Bharat Abhiyan 3.0 (announced on November 12, 2020), ECLGS scheme was extended through ECLGS 2.0 for 26 stress sectors and healthcare sector with credit outstanding of above Rs 50 crore and up to Rs 500 crore as on February 29, 2020.

The loans provided under ECLGS 2.0 have a five-year tenor, with a 12-month moratorium on repayment of principal.

It said that the entire scheme (ECLGS 1.0 and ECLGS 2.0) is valid till March 31, 2021.