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SBI disburses Rs 3,000 cr to MSMEs

Updated: Jun 03, 2020 06:09:51am
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SBI disburses Rs 3,000 cr to MSMEs

New Delhi, Jun 3 (KNN) The State Bank of India (SBI) has disbursed loans to 22,000 Micro, Small and Medium Enterprises (MSMEs) worth Rs 3,000 crore under government's credit guarantee scheme, said Rajnish Kumar, chairman of SBI.

"A scheme like the guarantee scheme for SMEs, it has capital implications for the banks. In a way, this Rs 3 trillion means Rs 30,000 crore further capitalisation also has happened indirectly for the banks," Kumar said at the Confederation of Indian Industries (CII) annual session.

Speaking on the issue of fund-starved non-banking finance companies (NBFCs), Kumar said, "We are definitely supporting all the NBFCs with whom the bank (SBI) has a satisfactory record of dealing."

The Union Cabinet headed by Prime Minister Narendra Modi in the last month had cleared Rs 3 lakh crore to MSME and interested MUDRA borrowers by way of Emergency Credit Line Guarantee Scheme (ECLGS).

Under the Scheme, 100% guarantee coverage to be provided by National Credit Guarantee Trustee Company Limited (NCGTC) for additional funding of up to Rs 3 lakh crore to eligible MSMEs and interested MUDRA borrowers, in the form of a Guaranteed Emergency Credit Line (GECL) facility.

The 100% guarantee scheme at a concessional rate of 9.25% for MSMEs under the Rs 3 lakh crore scheme was the second-biggest component of the Rs 20 lakh-crore package announced last week.

Currently, the rate of interest on loans given by banks to MSMEs varies from 9.5% to 17%, depending on the risk perception.

The government will also provide a corpus of Rs 41,600 crore for the scheme over the current and coming three financial years.

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