PSBs sanction loans worth Rs 10,361 to MSMEs under Rs 3 lakh crore credit scheme: FinMin office
New Delhi, Jun 4 (KNN) Union Finance Minister Nirmala Sitharaman has said that loans worth Rs 10,361.75 crore have been sanctioned by the public sector banks.
Taking to micro-blogging site twitter, the minister’s office, on Wednesday, said, ''Public sector banks have already sanctioned loans worth Rs 10,361.75 crore under the 100% Emergency Credit Line Guarantee Scheme. Out of this, Rs 3,892.78 crore has already been disbursed.''
However, the data on the number of MSMEs supported wasn’t disclosed.
The minister had announced the Rs 3 lakh crore collateral-free loan scheme last month for businesses and MSMEs that have been impacted by Covid-19.
The collateral free loans are for those with Rs 25 crore outstanding loan or Rs 100 crore turnover. The tenure of the loan will be 4-year and moratorium of 12 months,' FM had said at a press conference.
The Finance Minister also announced 100% credit guarantee cover to banks and Non-Banking Financial Corporation (NBFCs) on principal and interest which will benefit 45 lakh units.
Sitharaman further said that the government will create a Fund of Fund to infuse Rs 50,000 crore as equity for MSMEs which are viable businesses and need hand holding.
She also asserted that in order to provide stressed MSMEs with equity support; government will facilitate the provision of Rs. 20,000 crores as subordinate debt.
"This will enable 45 lakh MSME units to resume business activity and also safeguard jobs," she added.
Prime Minister Narendra Modi on Tuesday had also reassured MSMEs of growth with new measures in place particularly the revision in the MSME definition.
“This will enable MSMEs to grow without any worries and they will not have to follow other paths to maintain the status of MSMEs,” PMO India tweeted citing Modi in his address on the 125th anniversary of industry association CII.