: PSBs disburse loans to MSMEs worth Rs 12,200 cr under ECLGS #FinanceIndia #StockMarketNEWS PSBs disburse loans to MSMEs worth Rs 12,200 cr under ECLGS New Delhi, Jun 11 (KNN) Public sector banks (PSBs)

@StockMarketNEWS Thu 11 Jun, 2020

Posted in: #FinanceIndia #StockMarketNEWS

PSBs disburse loans to MSMEs worth Rs 12,200 cr under ECLGS #FinanceIndia #StockMarketNEWS
PSBs disburse loans to MSMEs worth Rs 12,200 cr under ECLGS New Delhi, Jun 11 (KNN) Public sector banks (PSBs) have disbursed Rs 12,200. 65 crore till June 9, 2020 under the Rs 3-lakh crore Emergency Credit Line Guarantee Scheme (ECLGS) for the Micro, Small and Medium Enterprises (MSME) sector, said Finance Ministry on Thursday.

Taking to micro-blogging site twitter, the finance Minister office said that the PSBs have sanctioned loans worth Rs 24,260. 65 crore under the 100 percent ECLGS starting June 1.

As of 9 June 2020, #PSBs have sanctioned loans worth Rs 24,260. 65 crore under the 100% Emergency Credit Line Guarantee Scheme, out of which Rs 12,200. 65 crore have been disbursed. Here are the bank-wise and state-wise details. #AatmanirbharBharat #MSMEs, the finance Minister office tweeted.

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.

On May 21, the cabinet had approved funding of up to Rs 3 lakh crore at a concessional rate of 9. 25 percent through ECLGS for the MSME sector.

Under the Scheme, 100% guarantee coverage to be provided by National Credit Guarantee Trustee Company Limited (NCGTC) for additional funding of up to Rs 3 lakh crore to eligible MSMEs and interested MUDRA. borrowers, in the form of a Guaranteed Emergency Credit Line (GECL) facility.

The government will also provide a corpus of Rs 41,600 crore for the scheme over the current and coming three financial years.

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.

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.

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.