The finance ministry on Friday said banks have disbursed Rs 52,255.53 crore loans under the Rs 3-lakh crore Emergency Credit Line Guarantee Scheme (ECLGS) for the MSME sector reeling under economic slowdown caused by the COVID-19 pandemic.
However, this is against the sanction of Rs 1.10 lakh crore under the 100 percent ECLGS for micro, small and medium enterprises (MSMEs) till July 1.
The scheme is the biggest fiscal component of the Rs 20-lakh crore Aatmanirbhar Bharat Abhiyan package announced by Finance Minister Nirmala Sitharaman in May.
The latest number on ECLGS, as released by the finance ministry, comprises disbursements by all 12 public sector banks (PSBs), 20 private sector banks and 9 non-banking financial companies (NBFCs).
"As of July 1, the total amount sanctioned under the 100 percent Emergency Credit Line Guarantee Scheme by #PSBs and private banks stands at Rs 1,10,343.77 crore, of which Rs 52,255.53 crore has already been disbursed," the finance minister said in a tweet.
Under the 100 per cent ECLGS, the loan amounts sanctioned by PSBs increased to Rs 63,234.94 crore, of which Rs 33,349.13 crore has been disbursed as of July 1, she said.
At the same time, private sector banks have sanctioned Rs 47,108.83 crore, while disbursed Rs 18,906.40 crore.
"The June 30 update of the 100 percent ECLGS loans to #MSME hubs marks a substantial increase over the June 24 update in terms of the amounts sanctioned and disbursed, and the number of accounts benefiting from the Scheme," Sitharaman said.
In another tweet, she said: "As of 30 June, #PSBs have sanctioned loans worth Rs 15,674.74 crore for 71 #MSME hubs in 27 States/UTs under the 100% Emergency Credit Line Guarantee Scheme, of which Rs 9,074.04 crore has already been disbursed."
Ahemdabad clustor has the highest sanction of Rs 1,910 crore, followed by Surat Rs 1,602 crore as on June 30.
Market leader SBI has sanctioned Rs 20,281 crore and disbursed Rs 12,885 crore as on June 26. It is followed by Punjab National Bank with a sanction of Rs 7,957 crore, but disbursement was at Rs 2,404 crore as of July 1.
Leading the state tally, business units of Maharashtra have got the highest cumulative sanction of Rs 6,578 crore from banks, while disbursement was to the tune of Rs 3,310 crore at the end of July 1.
It is followed by Tamil Nadu with a sanction of Rs 6,390 crore, with disbursement of Rs 3,695 crore.
On May 21, the Cabinet approved additional funding of up to Rs 3 lakh crore at a concessional rate of 9.25 per cent through ECLGS for the MSME sector.
Under the scheme, 100 per cent guarantee coverage will be provided by National Credit Guarantee Trustee Company (NCGTC) for additional funding of up to Rs 3 lakh crore to eligible MSMEs and interested Micro Units Development and Refinance Agency (MUDRA) borrowers, in the form of a guaranteed emergency credit line (GECL) facility.
For this purpose, a corpus of Rs 41,600 crore was set up by the government, spread over the current and next three financial years.
The scheme will be applicable to all loans sanctioned under GECL facility during the period from the date of announcement of the scheme to October 31 or till an amount of Rs 3 lakh crore is sanctioned under GECL, whichever is earlier.
All MSME borrower accounts with an outstanding credit of up to Rs 25 crore as on February 29, which were less than or equal to 60 days past due as on that date, i.e., regular, SMA-0 and SMA-1 accounts, and with an annual turnover of up to Rs 100 crore, are eligible for GECL funding under the scheme.
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