Few days back, FM Nirmala Sitharaman have called a review meeting with the sernior officils of leading scheduled banks on the issue of ECLGS and it’s outreach among MSMEs. Govt’s leadership have made it clear that the priority is MSME loans and to push ECLG Scheme amng this sector. Banks have so far sanctioned loans amounting to Rs 1.61 lakh crore to MSMEs under the Emergency Credit Line Guarantee Scheme (ECLGS), the government said.
“As of 03 Sept 2020, the total amount sanctioned under the 100% Emergency Credit Line Guarantee Scheme by #PSBs and private banks stands at Rs 1,61,017.68 crore, of which Rs 1,13,713.15 crore has already been disbursed,” said a tweet by the office of Finance Minister Nirmala Sitharaman.
Public sector banks have so far sanctioned Rs 78,067.21 crore under the scheme, and Rs 62,025.79 crore has been disbursed as of September 3.
“Compared to 24 Aug 2020, there is an increase of Rs 5,022.06 crore in the cumulative amount of loans sanctioned & an increase of Rs 7,786.16 crore in the cumulative amount of loans disbursed by both #PSBs and private sector banks combined as on 03 Sept 2020,” said another tweet.
The ECLGS scheme is the biggest fiscal component of the Rs 20-lakh crore Self-Reliant India Mission package announced by Finance Minister Sitharaman in May.
To ensure that the scheme achieves its objective of providing adequate liquidity to the MSME segment during the current difficult period, the Finance Ministry has regularly held review meetings with the banks.
The scheme would help more than 30 lakh units of MSMEs and other businesses restart their businesses post the lockdown.
As part of the Aatma Nirbhar 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 up to 20 per cent of their existing borrowing as additional loans at interest rates which were capped. The loan would be available to units with upto Rs 25 crore outstanding and turnover of up to Rs 100 crore whose accounts are standard.
The units will not have to provide any guarantee or collateral of their own. The amount will be 100 per cent guaranteed by the government, providing a total liquidity of Rs 3 lakh crore to more than 45 lakh MSMEs.