NEW DELHI: The Ministry of Finance said on Friday that banks had disbursed Rs 52,255.53 crore under the Rs 3 lakh crore emergency credit line guarantee program (ECLGS) for the MSME sector reeling from the economic downturn caused by the COVID-19 pandemic.
However, this goes against the sanction of Rs 1.10 lakh crore under the 100% ECLGS for micro, small and medium enterprises (MSMEs) until July 1.
The program is the largest fiscal component of the Aatmanirbhar Bharat Abhiyan package, a Rs 20 lakh crore, announced by Finance Minister Nirmala Sitharaman in May.
The latest ECGLS figure, released by the Ministry of Finance, includes disbursements from 12 public sector banks (PSBs), 20 private sector banks, and 9 non-bank financial corporations (NBFCs).
“As of July 1, the total amount sanctioned under the program to guarantee 100% emergency credit lines by #PSBs and private banks amounted to Rs 1,10,343.77, of which Rs. 52,255 , 53 crore rupees have already been disbursed, ”the finance minister said in a statement. a tweet.
Under the 100% ECLGS, loan amounts sanctioned by PSBs increased to Rs 63,234.94 crore, of which Rs 33,349.13 crore was disbursed as of July 1, she said. declared.
At the same time, private sector banks sanctioned Rs 47,108.83 crore, while they disbursed Rs 18,906.40 crore.
“The June 30 update of 100% ECLGS loans to #MPME hubs marks a substantial increase over the June 24 update in terms of amounts sanctioned and disbursed, and the number of accounts benefiting from the program, ”Sitharaman said.
In another tweet, she said: “As of June 30, the #PSB sanctioned loans worth Rs 15,674.74 crore for 71 #MPME hubs in 27 states / UT under the guarantee program 100% emergency line of credit, of which Rs 9,074.04 crore has already been disbursed. “
The Ahemdabad cluster has the highest penalty of Rs 1,910 crore, followed by Surat Rs 1,602 crore as of June 30.
Market leader SBI sanctioned Rs 20,281 crore and disbursed Rs 12,885 crore as of June 26.
It is followed by the Punjab National Bank with a penalty of Rs 7,957 crore, but the disbursement was Rs 2,404 crore on July 1.
Topping the state tally, business units in Maharashtra got the highest cumulative sanction of Rs 6,578 crore from banks, while disbursements stood at Rs 3,310 crore at the end of the 1st. July.
It is followed by Tamil Nadu with a penalty of Rs 6,390 crore, with a disbursement of Rs 3,695 crore.
On May 21, Cabinet approved additional funding of up to Rs 3 lakh crore at a concessional rate of 9.25% through ECGLS for the MSME sector.
Under this program, 100% guarantee coverage will be provided by the National Credit Guarantee Trustee Company (NCGTC) for additional funding of up to Rs 3 lakh crore to eligible MSMEs and interested borrowers from the Agency. development and refinancing of micro-units (MUDRA), in the form of a guaranteed emergency credit line (GECL).
To this end, a corpus of Rs 41,600 crore has been put in place by the government, spread over the current fiscal year and the next three fiscal years.
The scheme will be applicable to all loans sanctioned under the GECL facility during the period from the date of the scheme’s announcement to October 31 or until an amount of Rs 3 lakh crore is sanctioned under GECL, whichever comes first.
All MSME borrower accounts with outstanding credit up to Rs 25 crore as of February 29, which were less than or equal to 60 days overdue on that date i.e. regular accounts, SMA- 0 and SMA-1, and with an annual turnover of up to Rs 100 crore, are eligible for GECL funding under the program.