The Finance Ministry on Sunday stated that the banks have sanctioned loans to 4.2 million business units under the 3 trillion rupees Emergency Credit Line Guarantee Scheme (ECLGS) for the Micro Small and Medium Enterprises (MSME) sector.
The total amount of loans sanctioned is 1.6 trillion rupees. The Micro Small and Medium Enterprises (MSME) units that were adversely affected by the COVID-19 pandemic will receive the loan disbursement, which amounted to 1.18 trillion rupees that shall be available to 2.5 million MSME units till September 10th.
Finance Minister Nirmala Sitharaman on May announced the 20 trillion rupees Aatmanirbhar Bharat Abhiyan package to mitigate the distress by providing credit to different sectors, especially the Micro Small and Medium Enterprises (MSMEs) and the bank loans are the biggest component of the 20 trillion rupees program.
Additional credit amounting to Rs 1,63,226.49 crore is sanctioned to 42,01,576 borrowers according to the reports provided by the Public Sector Banks (PSBs) and the top 23 private sector banks. The progress of various schemes under the Aatmanirbhar Bharat Abhiyan package was share by the finance ministry and an amount of Rs 1,18,138.64 crore was disbursed to 25,01,999 borrowers.
The banks have approved the purchase of a portfolio of rupees 25,055.5 crores under the 45,000 crore rupees partial credit guarantee scheme 2.0 which was aimed for NBFCs, HFCs, and MFIs. Under the additional Emergency Working Capital Funding for farmers, 25,000 crore rupees were disbursed till August 28th under the 30,000 crore rupees limit through the NABARD scheme. The Reserve Bank of India allocated the balance amount of 5,000 crore rupees to the National Bank of Agriculture and Rural Development.
NABARD along with the collaboration of two agencies and banks launched the Structured Finance and Partial Guarantee Scheme to help the unrated NBFCs and MFIs to get credit from the lenders.
The Cabinet on May 20th approved the additional funding of up to 3 trillion rupees at a concessional rate of 9.25 percent to the Micro Small and Medium Enterprises Sector through ECLGS Scheme.
100 percent guarantee coverage will be provided by the National Credit Guarantee Trustee Company (NCGTC) for the additional funding of up to 3 trillion rupees to eligible MSMEs and a corpus of 41,600 crore rupees spread over the current and next three financial years was set up by the government.