(MENAFN- KNN India) Banks struggle to achieve loan target under ECLGS scheme; barely reach 1.27 lac cr
New Delhi, July 22 (KNN) The banks are struggling to achieve the loan target under Emergency Credit Line Guarantee Scheme (ECLGS) as till date they have only sanctioned loans worth about Rs 1,27,582 crore to Micro, Small and Medium Enterprises (MSMEs) under the Rs 3-lakh crore Emergency Credit Line Guarantee Scheme (ECLGS).
However, disbursements against this stood at Rs 77,613 crore till July 20 under the 100 per cent ECLGS for MSMEs.
The scheme is the biggest fiscal component of the Rs 20-lakh crore Aatmanirbhar Bharat Abhiyan package announced by Finance Minister Nirmala Sitharaman in May.
The latest numbers on ECLGS, as released by the finance ministry, comprise disbursements by all 12 public sector banks (PSBs), 22 private sector banks and 21 non-banking financial companies (NBFCs).
'As of 20 July 2020, the total amount sanctioned under the 100% Emergency Credit Line Guarantee Scheme by #PSBs and private banks stands at Rs 1,27,582.60 crore, of which Rs 77,613.06 crore has already been disbursed, the finance minister said in a tweet on Tuesday.
She further informed that under ECLGS, the loan amounts sanctioned by PSBs increased to Rs 70,894.59 crore, of which Rs 45,797.29 crore has been disbursed as of July 20, while the private sector banks have sanctioned Rs 56,688 crore and disbursed Rs 31,815 crore.
'Compared to 15 July 2020, there is an increase of Rs 4,237.44 crore in the cumulative amount of loans sanctioned & an increase of Rs 9,301.51 crore in the cumulative amount of loans disbursed, by both #PSBs and private sector banks combined as on 20 July 2020, Sitharaman added.
The credit given to MSMEs impacted due to COVID pandemic is part of Rs 20 lakh crore stimulus package announced by Prime Minister Narendra Modi under the Aatmanirbhar Bharat campaign. The government had also launched the subordinate debt scheme last scheme to offer Rs 20,000 crore guarantee cover to 2 lakh MSMEs.
The scheme was introduced to help distressed MSME accounts or NPAs as on April 30, 2020.
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