With a motive to help Micro, Small and Medium Enterprises (MSMEs) and quench their liquidity thirst amid COVID-19 pandemic, the State Bank of India (SBI) has decided to provide collateral-free loans to 48,168 MSMEs in Odisha under the Guaranteed Emergency Credit Line (GECL).
The largest public sector lender has already sent pre-approved offer letters to these MSMEs of which 20,182 enterprises have been sanctioned Rs 644.82 crore so far.
Talking to media persons on Friday, on the eve of the International MSME Day, Bhubaneswar circle CGM Ruma Dey said total loan amount for the MSME sector under the GECL scheme for 2020-21 fiscal has been pegged at Rs 950 crore.
While urging enterprises to come forward and avail the benefit, she said, “The existing affected units will get 20 per cent (pc) of their fund-based limits with 12 months moratorium and four years repayment period to reduce the stress level in working capital requirements.”
Reportedly, as many as 15,632 pre-approved offer letters have been sent to the eligible borrowers and 15,615 units have been sanctioned Rs 419.39 crore under the Common Covid-19 Emergency Credit Line (CCECL) scheme so far in the State.
“EMI has been deferred in all eligible term loans upto August 31 as Covid-19 relaxations. Under digital products, 14,603 accounts have been sanctioned under e-MUDRA and approximately Rs 70 crore have been disbursed,” Dey informed.
The GECL is a loan for which a 100% guarantee would be provided by the National Credit Guarantee. Trustee Company (NCGTC) to Member Lending Institutions (MLIs), and which will be extended. in the form of additional working capital term loan facility in case of Scheduled Commercial Banks. The interest rate of the loan ranges from 7.8 pc to 9.25 per cent.