44% Target for ECLG Scheme for MSME Credit is Achieved: CARE Ratings
In a report published by CARE Ratings, it is mentioned that ECLG Scheme have achieved so far 44% of it’s loan target. Both Public Sector Banks (PSBs) and personal Sector Banks have (PVBs) have sanctioned quite Rs 1.36 lakh to Micro, Small and Medium Enterprises (MSME) sector under the Emergency Credit Line Guarantee Scheme (ECLGS) till July 29, which is 44 per cent of the targeted amount mentioned within the report.
Finance Minister Nirmala Sitharaman had announced the credit scheme for providing liquidity support to MSME, which allowed banks to sanction government-backed guarantee loans up to Rs 3 lakh crore by the top of October 2020.
”As on July 29, 2020 public sector banks (PSBs) and personal sector banks (PVBs) sanctioned Rs 1,36,155 crore (in 40 lakh accounts) and disbursed Rs 87,227 crore,” the report said.
The report also mentioned that as on July 23, 2020, PSBs and PVBs sanctioned Rs 1,30,492 crore (in 38.19 lakh accounts) and disbursed Rs 82,065 crore (in 20.16 lakh accounts) to MSMEs under the ECLGS scheme.
”The cumulative sanctions by banks total around 44 per cent of the targeted Rs 3 lakh crore,” it added.
As per the report the PSB has sanctioned more loans than private banks.
”Of the entire loan amount sanctioned and disbursed as on July 23, PSBs’ share stood at 55 per cent and 58 per cent respectively. Meanwhile, private banks had sanctioned and disbursed around 45 per cent and 42 per cent of the quantity , respectively,” it added.
”Of the targeted Rs 3 lakh crore, the cumulative sanctions by PSBs are around 24 per cent while that by private banks is around 20 per cent,” the report added.
State Bank of India (SBI) has recorded the utmost cumulative sanctions and disbursements of Rs 21,027 crore and Rs 15,112 crore respectively. After SBI, Punjab commercial bank (PNB) has recorded the second-largest cumulative sanctions at Rs 9,464 crore.
Meanwhile, on Lammas , the govt widened the scope of the Rs 3 lakh crore MSME credit guarantee scheme by doubling the upper ceiling of loans outstanding to Rs 50 crore and including certain individual loans given to professionals like doctors, lawyers and chartered accountants for business purposes under its ambit.