Banks Disbursed Loans More than INR 50,000 Crore to MSMEs: Nirmala Sitharaman

The Indian government has taken imperative moves to stabilise the MSME segment. Earlier in May, it launched INR 3-lakh crore Emergency Credit Line Guarantee Scheme (ECLGS) to uphold the MSME sector, which is impacted by the pandemic. The scheme is part of the INR 20 lakh crore Aatma Nirbhar Bharat Abhiyan package that was proclaimed by the Finance Minister, Nirmala Sitharaman. 

In the latest development, the finance ministry has released data about the ECLGS. The released data shows disbursements made by public sector banks (PSBs), private sector banks and non-banking financial companies (NBFCs).

In a twitter post, the Finance Minister, Nirmala Sitharaman said that as of July 1, the total amount sanctioned under the 100 per cent ECLGS by public sector banks and private sector banks stand at INR 1,10, 343.77 crore. Out of which, INR 52, 255.53 crore has already been disbursed. 

                                             (source:twitter)

According to the ECLGS report, 12 public sector banks have disbursed INR 33,349.13 crore in aggregate against the cumulative sanctioned INR 63,234.94 crore. While 20 private sector banks and 9 NBFCs have disbursed loans up to INR18,906.40 crore against the cumulative sanctioned INR47,108.83 crore.

In another twitter post, Sitharaman told that the June 30 update of the 100 per cent ECLGS loans to MSME hubs marks a substantial increase over the June 24 update in terms of the amounts sanctioned and disbursed, and the number of accounts benefitting from the scheme.      

                                                              (Source:Twitter)

Followed by the previous tweet, Sitharaman also said that as of June 30, public sector banks (PSBs) have sanctioned loans worth INR 15,674.74 crore for 71 MSME hubs in 27 states or Union Territories under the 100 per cent the ECLGS scheme, of which INR 9,074.04 crore has already been disbursed. 

According to the shared data report, the highest amount of loan is disbursed at Ahmedabad with INR 1,149.01 crore followed by Surat with INR 856.25 crore. 

The ECLGS data related to the banks exhibit that the State Bank of India (SBI) has disbursed INR 12,885.19 crore in aggregate. Canara Bank follows it with a cumulative disbursement of INR 4,342.15 crore.

In the similar report, loans disbursement was highest in Tamil Nadu with INR 3,695.57 crore. After this, Maharashtra had loans disbursed up to INR 3,310.98 crore as of July 1. 

The cabinet had approved additional funding of nealy INR 3 lakh crore for the MSME segment. The funding was decided at a rate of 9. 25 per cent through the ECLGS scheme. Through this, MSMEs and interested MUDRA borrowers will be rendered INR 3 lakh crore at 100 per cent guarantee coverage by NCGTC. The additional funding would be guaranteed by the emergency credit line facility.