SBI on top! MSME get money power courtesy ECLGS
Under the 100 per cent ECLGS backed by a Government guarantee, Indian Public Sector Banks (PSBs) have sanctioned loans worth over Rs 1 lakh crore as of June 26, 2020.
Under the 100 per cent Emergency Credit Line Guarantee Scheme (ECLGS) backed by a Government guarantee, Indian Public Sector Banks (PSBs) have sanctioned loans worth over Rs 1 lakh crore as of June 26, 2020, of which more than Rs 45,000 crore has already been disbursed. This would help more than 30 lakh units of MSMEs and other businesses restart their businesses post the lockdown. SBI, Bank of Baroda, PNB, Canara Bank & HDFC Bank are among the top lenders. The Ministry of Finance informed about the MSME loan disbursal in a statement.
Giving details about the MSME loan disbursal details the Ministry of Finance said, "PSBs have sanctioned loans of Rs 57,525.47 crore whereas Private Sector Banks have sanctioned loans of Rs 44,335.52 crore under ECLGS. The top lenders under the Scheme are SBI, Bank of Baroda, PNB, Canara Bank & HDFC."
See Zee Business Live TV streaming below:
The ministry statement went on to add that as part of the Atmanirbhar package, the Government had announced its plans for Rs. 3 lakh Crore as additional credit to MSMEs and small businesses. Such enterprises were to be eligible to receive upto 20% of their existing borrowing as additional loans at interest rates which were capped.
BAnk wise loan disbursal details:
To help small businesses during the COVID-19 lockdown, the Finance Minister Nirmala Sitharaman announced collateral-free loans up to Rs 3 lakh crore backed by government guarantee on May 13th, 2020. The 100 per cent collateral-free MSME loan is being called the Emergency Credit Line Guarantee Scheme (ECLGS), which is being provided by the National Credit Guarantee Trustee Company (NCGTC) to banks, NBFCs and Financial Institutions (FIs).
According to this scheme, every eligible MSME or business enterprise, gets a pre-approved sanction limit of up to 20 per cent of loan outstanding as on 29th February, 2020. This is in the form of additional working capital term loan facility (in case of banks and Financial Institutions), and additional term loan facility (in case of NBFCs).
Get Latest Business News, Stock Market Updates and Videos; Check your tax outgo through Income Tax Calculator and save money through our Personal Finance coverage. Check Business Breaking News Live on Zee Business Twitter and Facebook. Subscribe on YouTube.