Post-lockdown help for 19 lakh MSMEs
Public and private banks have so far already sanctioned loans worth over Rs.79,000 crore under the Emergency Credit Line Guarantee Scheme (ECLGS) as of 20 June 2020, of which more than Rs.35,000 crore has already been disbursed.
The scheme, with top lenders under SBI, HDFC Bank, Bank of Baroda, PNB and Canara Bank, has helped 19 lakh MSMEs and other businesses restart their businesses post the lockdown, said the Finance Ministry on 23 June 2020.
As part of the Aatmanirbhar (self-reliant) package, the Government had announced its plans for Rs.3 lakh crore as an additional credit to MSMEs and small businesses. Such enterprises were to be eligible to receive up to 20% of their existing borrowing as additional loans at interest rates which were capped.
Separately, under RBI’s Special Liquidity Facility announced in March-April 2020, the Small Industries Development Bank of India (SIDBI) has sanctioned over Rs.10,220 crore to NBFCs, Micro Finance Institutions & Banks for lending to MSME& small borrowers.
National Housing Bank (NHB) has sanctioned its entire facility of Rs.10,000 crore to Housing Finance Companies.
This refinances by SIDBI and NHB is in addition to ongoing schemes through which over Rs.30,000 crore has been sanctioned. NBFCs and MFIs are being further helped under the Extended Partial Guarantee Scheme where approvals have crossed Rs.5,500 crore.
Transactions for another Rs.5,000 crore are under process of approval while certain other deals are currently under negotiation, said the Ministry. fiinews.com
