MSME credit disbursement jumps 113% under PM Modi’s collateral-free scheme
A corpus of Rs 41,600 crore will be provided by the government over the current and coming three financial years
The amount of emergency credit disbursed by public sector banks to MSMEs under PM Modi’s Rs 3 lakh crore collateral-free Emergency Credit Line Guarantee Scheme (ECLGS) as of June 5 stood at Rs 8,320 crore, Finance Minister Nirmala Sitharaman’s office said in a tweet on Sunday. This is 113 per cent up from Rs 3,892 crore disbursed as of June 1, 2020. On the other hand, the sanctioned amount also increased by 70 per cent from Rs 10,361 crore to Rs 17,705 crore during the said period. The number of MSME accounts disbursed with credit grew 292 per cent from 38,589 to over 1.51 lakh.
State Bank of India continued to lead both the charts with 73 per cent (Rs 6,084 crore) of the total credit disbursed and 32 per cent (48,797) of the accounts disbursed with credit. Other banks leading the disbursement tally as of June 5 were Union Bank of India (Rs 435 crore), Canara Bank (Rs 430 crore), Bank of India (Rs 257 crore), and Punjab National Bank (Rs 242 crore). In terms of the number of accounts disbursement, Central Bank of India (27,060), Canara Bank (22,562), Union Bank of India (16,616) and Bank of India (11,633) were the top banks following the SBI.
MSMEs accounts with up to Rs 25 crore in outstanding credit as on February 29, 2020 less than or equal to 60 days past due as on the date and up to Rs 100 crore in turnover are eligible for the ECLGS scheme. The government will provide 100 per cent guarantee cover to banks and NBFCs lending to eligible MSMEs.
The cabinet, chaired by PM Modi, had last month approved the scheme for MSMEs and interested MUDRA loan borrowers. A corpus of Rs 41,600 crore will be provided by the government over the current and coming three financial years. According to Sitharaman, 45 lakh MSME units will be able to resume business and safeguard jobs through this support.
Courtesy: Financial Express