The 100 per cent Emergency Credit Line Guarantee Scheme (ECLGS) to support MSMEs in these troubled Covid-19 times is gathering pace with public sector banks (PSBs) having sanctioned loans worth ₹17,705.64 crore and disbursed as much as ₹8,320.24 crore as of June 5.
Tamil Nadu has topped the chart in terms of MSMEs that has got the maximum sanction and disbursements in value terms, data tweeted by the Finance Minister’s Office showed. As many as 33,725 accounts in Tamil Nadu got sanctions worth ₹2,018.89 crore under the ECLGS, the data showed. So far ₹1,325.04 crore has been disbursed to 18,867 accounts, it added.
The ECLGS scheme is a specific response to the unprecedented situation of Covid-19 and seeks to provide relief to the MSME sector by incentivising Member Lending Institutions (MLIs) to provide additional credit of up to ₹3-lakh crore at low cost, thereby enabling MSMEs to meet their operational liabilities and restart their business.
Under this scheme, loans extended to MSMEs by banks and NBFCs would be 100 per cent guaranteed by the National Credit Guarantee Trustee Company (NCGTC). The loan — which includes a moratorium for the first 12 months — will be extended in the form of additional working capital term loan facility in case of banks and additional term loan in case of non-banking finance companies to MSMEs with turnover up to ₹100 crore till October 31, 2020 and Pradhan Mantri Mudra Yojana borrowers.
UP is second
The second State on the list is Uttar Pradesh for sanctioning and disbursing loans by PSBs in value terms. In UP, loan sanctions have been made to 43,541 accounts for an amount of ₹1,960.97 crore. The amount disbursed for MSME units in this State stood at ₹852.05 crore in respect of 21,728 accounts.
The other States that have seen significant amount of loan sanctions include Gujarat (₹1,696.23 crore); Maharashtra (₹1,316.29 crore), Andhra Pradesh (₹1,015.24 crore) and Rajasthan (₹955 crore).
MSMEs are the backbone of the Indian economy. As many as 45 lakh MSMEs are expected to benefit from the ECLGS scheme. which was rolled out as part of the ₹20-lakh crore Aatmanirbhar Bharat stimulus package rolled out by the Modi government to help cope with the economic shocks from Covid-19 induced lockdown.
Published on June 8, 2020