Banks sanction Rs 1.61 lakh crore loans to MSMEs under ECLGS
New Delhi, Sep 8 (KNN) Banks have sanctioned loans to Micro, Small and Medium Enterprises (MSMEs) worth Rs 1,61,017.68 under Emergency Credit Line Guarantee Scheme (ECLGS) till September 3rd.
Finance Minister Nirmala Sitharaman on Monday took to the micro-blogging site twitter and said, '' As of 03 Sept 2020, the total amount sanctioned under the 100 per cent Emergency Credit Line Guarantee Scheme by #PSBs and private banks stands at Rs 1,61,017.68 crore, of which Rs 1,13,713.15 crore has already been disbursed.''
The data tweeted by Sitharaman also revealed that Private sector banks have surpassed the state-run banks in participating in the government’s ECLGS.
According to the latest data, private banks have sanctioned Rs 82,950 crore so far as against Rs 786067 crore by state-run banks.
When it comes to disbursement, the private sector banks have so far disbursed Rs 51,687 crore as on September 3, compared with Rs 62,025 crore by public sector banks.
The ECLGS was announced by the government as a part of Aatma Nirbhar Bharat Package, to mitigate the distress caused by lockdown due to COVID-19 by providing credit to different sectors, especially MSMEs. 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.