ENA MSME 2020-06-20 06:16:55 <p><strong>New Delhi, Jun 20 (KNN)</strong> The Public Sector Banks (PSBs) have disbursed Rs 21,028.55 crore till June 18 under the Rs 3-lakh crore Emergency Credit Line Guarantee Scheme (ECLGS) for the MSME sector reeling under stress due to the coronavirus-induced lockdown.</p> <p>Public sector lenders have sanctioned loans worth Rs 40,416 crore under the 100 per cent ECLGS for the Micro, Small and Medium Enterprises (MSMEs), starting June 1.</p> <p>The scheme is the biggest fiscal component of the Rs 20-lakh crore Atmanirbhar Bharat Abhiyan package announced by Finance Minister Nirmala Sitharaman last month.</p> <p> As of 18 June 2020, #PSBs have sanctioned loans worth Rs 40,416 crore under the 100% Emergency Credit Line Guarantee Scheme, out of which Rs 21,028.55 crore has already been disbursed, Sitharaman said in a tweet.</p> <p>Last month, Finance Minister Nirmala Sitharaman had announced the ECLGS, for the hard-hit MSME sector, which is the biggest fiscal component of the Rs 20-lakh crore Aatmanirbhar Bharat Abhiyan package.</p> <p>Under the scheme, 100 per cent guarantee coverage will be provided by National Credit Guarantee Trustee Company (NCGTC) for additional funding of up to Rs 3 lakh crore to eligible MSMEs and interested Micro Units Development and Refinance Agency (MUDRA) borrowers in the form of a guaranteed emergency credit line (GECL) facility.</p> <p>The government will also provide a corpus of Rs 41,600 crore for the scheme over the current and coming three financial years.</p> <p>'The main objective of the Scheme is to provide an incentive to Member Lending Institutions (MLIs), i.e., Banks, Financial Institutions (FIs) and Non-Banking Financial Companies (NBFCs) to increase access to, and enable availability of additional funding facility to MSME borrowers, in view of the economic distress caused by the COVID-19 crisis, by providing them 100 per cent guarantee for any losses suffered by them due to non-repayment of the GECL funding by borrowers,'' the government said.</p> <p>'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,' said Finance Minister Nirmala Sitharaman.</p> <p><iframe frameborder="0" height="500" id="mgiframe" src="//mg.mgid.com/mghtml/framehtml/c/k/n/knnindia.co.in.338951.html" width="100%"></iframe></p> 25290 https://knnindia.co.in/news/newsdetails/msme/psbs-disburse-loans-to-msmes-worth-rs-21028-under-emergency-credit-guarantee-scheme 2020-06-20 06:16:55 knnindia.co.in