Emergency Credit Line Guarantee Scheme: Banks sanction Rs 1.63 lakh cr to MSMEs, other eligible businesses

Banks have sanctioned loans worth over Rs 1.63 lakh crore to MSMEs and other eligible businesses so far, under the Emergency Credit Line Guarantee Scheme (ECLGS) for over 42 lakh borrowers, the Finance Ministry said on Sunday.

Out of the total sanctioned amount over Rs 1.18 lakh crore has been disbursed, it said.

"As on 10.09.2020, as reported by Public Sector Banks and top 23 private sector banks, additional credit amounting to Rs 1,63,226.49 crore has been sanctioned to 42,01,576 borrowers. Amount of Rs 1,18,138.64 crore has been disbursed to 25,01,999 borrowers as on 10.09.2020," it said.

The ministry statement laying down the progress of the schemes announced under the Aatmanirbhar Bharat economic package in May, said that as on September 11, around 37 proposals involving an amount of Rs 10,590 crore have been approved under the Rs 30,000 crore Special Liquidity Scheme for NBFCs, housing finance companies and micro finance institutions.

Six more applications seeking financing of Rs 783.5 crore are under process.

On the Rs 30,000 crore Additional Emergency Working Capital Funding for farmers through NABARD, the ministry said that as on August 28, 2020, Rs 25,000 crore has been disbursed.

It added that the balance amount of Rs 5,000 crore under the Special Liquidity Facility (SLF) has been allocated to NABARD by the RBI for smaller NBFCs and NBFC-MFIs and ANABARD is finalising operational guidelines to roll it out soon.

Besides, NABARD has also launched Structured Finance and Partial Guarantee scheme in collaboration with two agencies and banks to help unrated NBFCs and MFIs to get credit from lenders.

This mechanism worked out with two such agencies and banks will enhance eligibility of credit by 5-6 times to those small MFIs who do not have any rating. Once all the earmarked Rs 500 crore for this scheme is deployed, credit availability to those small NBFCs and MFIs is expected to reach to an extent of Rs 2,500 to Rs 3,000 crore.

Further, refunds of over Rs 1.01 lakh crore have been issued to more than 27.55 lakh taxpayers between April 1, 2020 and September 8, 2020. Income tax refunds of Rs 30,768 crore have been issued in 25,83,507 cases and corporate tax refunds of Rs 70,540 crore have been issued in 1,71,155 cases.

All corporate tax refunds up to Rs 50 crore have been issued in all cases, wherever due, it said.