Banks disburse Rs 68,311 cr under ECLGS to MSMEs

New Delhi, July 16 (SocialNews.XYZ) Banks have so far disbursed over Rs 68,000 crore so far under the Emergency Credit Line Guarantee Scheme to MSMEs and other eligible businesses.

As of Wednesday, July 15, both public and private sector banks have sanctioned a total of over Rs 1.23 lakh crore.

"As of 15 July 2020, the total amount sanctioned under the 100 per cent Emergency Credit Line Guarantee Scheme by #PSBs and private banks stands at Rs 1,23,345.16 crore, of which Rs 68,311.55 crore has already been disbursed," said a tweet by Finance Minister Nirmala Sitharaman's office.

Compared to July 9, there is an increase of Rs 3,245.79 crore in the cumulative amount of loans sanctioned and an increase of Rs 6,323.65 crore in the cumulative amount of loans disbursed, by both PSBs and private sector banks combined.

The loan amounts sanctioned by public sector banks increased to Rs 69,135.19 crore, of which Rs 41,819.19 crore has been disbursed as of July 15, said another tweet.

To provide relief to the businesses, additional working capital finance of 20 per cent of the outstanding credit as on February 29, in the form of a term loan at a concessional rate of interest is provided under the scheme. This would be available to units with upto Rs 25 crore outstanding and turnover of up to Rs 100 crore whose accounts are standard.

The units will not have to provide any guarantee or collateral of their own. The amount will be 100 per cent guaranteed by the government, providing a total liquidity of Rs 3 lakh crore to more than 45 lakh MSMEs.

Source: IANS