However, disbursements in this regard amounted to Rs 56,091.18 lakh crore until July 4 under 100% ECLGS for micro, small and medium enterprises (MSME).
The program is the largest fiscal component of the 20 crore rupee “Aatmanirbhar Bharat Abhiyan” package announced by Finance Minister Nirmala Sitharaman in May.
The latest ECGLS figures, released by the Ministry of Finance, include disbursements from 12 public sector banks (PSBs), 20 private sector banks, and 10 non-bank financial corporations (NBFCs).
“As of July 4, 2020, the total amount sanctioned under the 100% emergency credit lines guarantee program by #PSBs and private banks was Rs 1,14,502.58 crore, of which 56 were Rs. 091.18 crore has already been disbursed, ”the finance minister said in a tweet.
Under the ECLGS, loan amounts sanctioned by PSBs increased to Rs 65,863.63 crore, of which Rs 35,575.48 crore was disbursed as of July 4, she said.
At the same time, private sector banks sanctioned Rs 48,638.96 crore and disbursed Rs 20,515.70 crore.
“Compared to July 1, 2020, there is an increase of Rs 4,158.51 crore in the cumulative amount of sanctioned loans and an increase of Rs 3,835.65 crore in the cumulative amount of disbursed loans, both by the #PSB and private sector banks combined as of July 4, 2020, “Sitharaman said.
Market leader SBI sanctioned Rs 20,628 crore in loans and disbursed Rs 13,405 crore. It is followed by the Punjab National Bank, which sanctioned Rs 8,689 crore. However, its disbursements stood at Rs 2,595 crore as of July 4.
Maharashtra’s business units got the highest cumulative sanction of Rs 6,856 crore from banks, while disbursements stood at Rs 3,605 crore as of July 4. It is followed by Tamil Nadu, with a sanction of Rs 6,616 crore in loans and disbursements of Rs 3,871 crore.
On May 21, Cabinet approved additional funding of up to Rs 3 lakh crore at a concessional rate of 9.25% through ECGLS for the MSME sector.
Under this program, 100% guarantee coverage will be provided by the National Credit Guarantee Trustee Company (NCGTC) for additional funding of up to Rs 3 lakh crore to eligible MSMEs and interested borrowers from the Agency. development and refinancing of micro-units (MUDRA) in the form of a guaranteed emergency credit line (GECL).
To this end, a corpus of Rs 41,600 crore has been put in place by the government, spread over the current fiscal year and the next three fiscal years.
The scheme will be applicable to all loans sanctioned under the GECL facility during the period from the date of the scheme’s announcement to October 31 or until the amount of Rs 3 lakh crore is sanctioned under the GECL, whichever comes first.
All MSME borrower accounts with outstanding credit up to Rs 25 crore as of February 29, which were less than or equal to 60 days past due on that date i.e. regular accounts, SMA-0 and SMA-1, and with an annual turnover of up to Rs 100 crore are eligible for GECL funding under the program.