Rs 68311 Cr. Disbursed under Emergency Credit Line Guarantee Scheme to the MSMEs

As per the data released by the Ministry of Finance, the Private and Public Sector banks in India have disbursed around Rs 68311 Cr. under the Emergency Credit Line Guarantee Scheme to the Micro, Small and Medium Enterprises in the country. As on July 15 2020, the total sanctioned amount under the scheme is Rs 123345.16 crores out of which Rs 68311 crores has already been disbursed by the banks.

As compared to July 09, there is an increase of Rs 3245.79 crores in the total loan amount sanctioned whereas the disbursement has seen an increase of Rs 6323.65 crores in the last one week. The loan amount sanctioned by the PSBs has increased to Rs 69135.19 crores out of which Rs 41819.19 crores has already been disbursed.

The information has been stated in a tweet from the Finance Minister’s Office.

Emergency Credit Line Guarantee Scheme

Under this scheme, the government has decided to provide additional working capital finance to the MSME sector of the country. So, 20% of the total outstanding credit of any enterprise is to be given as term loan at a concessional rate of interest, under this scheme. This has been made available to the units with up to Rs 25 crores outstanding and a maximum turnover of Rs 100 crores. The only criterion is that their credit accounts should be standard as on February 29 2020.

These units will not have to provide any collateral or guarantee but the amount will be guaranteed by the government. The aim is to arrange for Rs 3 lakh crores as liquidity support to 45 lakh MSME units operating in the country.

Month: Current Affairs - July, 2020