Banks disburse over ~50K cr to MSMES under credit scheme

The finance ministry on Friday said banks have disbursed ~52,255.53 crore loans under the ~3-trillion Emergency Credit Line Guarantee Scheme (ECLGS) for the MSME sector reeling from economic slowdown caused by the pandemic.

However, this is against the sanction of ~1.10 trillion under the 100 per cent ECLGS for micro, small and medium enterprises (MSMES) till July 1.

The scheme is the biggest fiscal component of the ~20trillion Atmanirbhar Bharat Abhiyan package announced by the finance minister in May. The latest number on ECLGS, as released by the finance ministry, comprises disbursements by all 12 public sector banks (PSBS), 20 private sector banks and 9 non-banking financial companies.