MSME: Rs. 1.20 Lakh Crore Loan Approved, Know Full Figures

HIGHLIGHTS: The Finance Ministry has informed that banks have passed loans of about Rs 1,20,099 crore to the MSME (Micro, Small and Medium Enterprises) sector under the Rs 3 lakh crore Emergency Credit Line Guarantee Scheme (ECLGS).

The Finance Ministry has informed that banks have passed loans of about Rs 1,20,099 crore to the MSME (Micro, Small and Medium Enterprises) sector under the Rs 3 lakh crore Emergency Credit Line Guarantee Scheme (ECLGS). However, against the loan passed, the MSME has been allotted a loan of Rs 61,987.90 crore till Thursday (9 July) under the 100 percent ECLGS scheme. It may be noted that the government had announced an ECLGS of Rs 3 lakh crore in a package of Rs 20 lakh crore to help the MSME sector in the Corona crisis. The scheme is the largest fiscal component of the Self-Reliant India Campaign relief package announced by Finance Minister Nirmala Sitharaman in May.

Who is distributing loans to MSME?

 According to the data released by the Ministry of Finance, there are 11 government and 22 private banks among the lenders to MSMEs. In addition there are 21 NBFCs (Non-Banking Financial Companies). According to the Finance Ministry, the loan amount passed by the government and private banks under the 100 percent Emergency Credit Line Guarantee Scheme till July 9, 2020 is Rs 1,20,099.37 crore, of which Rs 61,987.90 crore has been allocated. Under ECLGS, public sector banks have passed a loan of Rs 68,145.40 crore, out of which a loan of Rs 38,372.88 crore has been given till 9 July.

Private banks have passed loans worth Rs 51,953.97 crore and distributed Rs 23,615.02 crore. The country's largest bank SBI has approved a loan of Rs 20,788 crore and has disbursed Rs 13,893 crore. It is followed by Punjab National Bank, which has sanctioned a loan of Rs 8,977 crore. However, till July 9, it has disbursed only Rs 2,975 crore as loan. Following the Finance Minister's announcement, on May 21, the Cabinet approved additional funding of up to Rs 3 lakh crore for the MSME sector under the scheme at a concessional rate of 9.25 per cent.

How long is the opportunity for MSMEs?

Under ECLGS, MSME firms can take loans till 31 October or till the completion of Rs 3 lakh crore. Government banks have so far passed the maximum loan of Rs 7035 crore for business units in Maharashtra, out of which loan of Rs 3897 crore has been given. It is followed by Tamil Nadu, where a loan of Rs 6955 crore has been passed for the firms, out of which a loan of Rs 4153 crore has been given.

Source: Web