PSU banks disburse `8,320 cr loan to MSMES under ECLGS till June 5

NEW DELHI: The Finance Ministry on Sunday said public sector banks have disbursed Rs 8,320 crore till June 5 under the Rs 3-lakh crore Emergency Credit Line Guarantee Scheme (ECLGS) for the MSME sector, hit hard by the coronavirus-induced lockdown.

PSBS have sanctioned loans worth Rs 17,705.64 crore under the 100 per cent ECLGS starting June 1. The scheme is the biggest fiscal component of the Rs 20-lakh crore Self-reliant India Mission package announced by Finance Minister Nirmala Sitharaman last month.

“As of 5 June 2020, #PSBS have sanctioned loans worth Rs 17,705.64 crore under the 100 per cent Emergency Credit Line Guarantee Scheme, out of which Rs 8320.24 crore have been disbursed,” Sitharaman said in a tweet.

State Bank of India (SBI), the country’s largest lender has sanctioned Rs 11,701 crore, while disbursement was nearly half at Rs 6,084.71 crore at the end of June 5.

It is followed by Punjab National Bank (PNB) with a sanction of Rs 1,295.59, but disbursement was less than onefifth at Rs 242.92 crore.

On May 21, the Cabinet had approved additional funding of up to Rs 3 lakh crore at a concessional rate of 9.25 per cent through ECLGS for the MSME sector.

Under the scheme, 100 per cent guarantee coverage will be provided by National Credit Guarantee Trustee Company (NCGTC) for additional funding of up to Rs 3 lakh crore to eligible MSMES and interested Micro Units Development and Refinance Agency (MUDRA) borrowers, in the form of a guaranteed emergency credit line (GECL) facility.

For this purpose, a corpus of Rs 41,600 crore was provided by the government, spread over the current and next three financial years.

The scheme will be applicable to all loans sanctioned under GECL facility during the period from the date of announcement of the scheme to October 31 or till an amount of Rs 3 lakh crore is sanctioned under GECL, whichever is earlier.