(MENAFN- KNN India) Loans worth more than Rs 1 lakh crore sanctioned under ECLGS: Finance Ministry
New Delhi, Jul 1 (KNN) In bid to help COVID-19 hit Micro, Small and Medium Enterprises (MSMEs) and quench their liquidity thirst, the government is leaving no stone unturned.
As per the Finance Ministry, Public Sector Banks (PSBs) have sanctioned loans worth over Rs 1 lakh crore as of June 26, 2020, of which more than Rs 45,000 crore has already been disbursed under the 100 per cent Emergency Credit Line Guarantee Scheme (ECLGS) backed by a Government guarantee.
Taking to the micro-blogging site twitter, the Finance Ministry highlighted the achievement under the scheme that has been given with combined efforts of both private and public sector banks.
'Support to #MSMEs
Loans worth more than Rs 1 lakh crore sanctioned in 37 days
30 lakh+ borrowers under 100% Emergency Credit Line Guarantee Scheme(#ECLGS)
Enabling #MSMEs to meet operational liabilities & restart their businesses (1/3),' the ministry tweeted.
'This would help more than 30 lakh units of MSMEs and other businesses restart their businesses post the lockdown. SBI, Bank of Baroda, PNB, Canara Bank & HDFC Bank are among the top lenders,' The ministry said in a statement on Tuesday.
The statement further revealed that PSBs have sanctioned loans of Rs 57,525.47 crore whereas Private Sector Banks have sanctioned loans of Rs 44,335.52 crore under ECLGS.
The ECLGS 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 part of the Aatmanirbhar 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 upto 20% of their existing borrowing as additional loans at interest rates which were capped.
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 meetings with the banks.
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