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Rs 1.51 lakh cr pay out by banks aid MSME liquidity
The government is going all out to ensure that liquidity concerns of the MSME sector are addressed on priority under its Emergency Credit Line Guarantee Scheme (ECLGS).
As of August 18, 2020 public sector and private banks have sanctioned loans worth over Rs 1.51 lakh crore under the 100 per cent Emergency Credit Line Guarantee Scheme, of which close to Rs 1.02 lakh crore has already been disbursed.
There has been a big jump in the sanctions in the last 15 days. The sanctions have increased rapidly by about Rs 12,000 crore while disbursement increased by close to Rs 10,000 crore.
In a tweet, the Ministry of Finance said: “Loans worth more than Rs 1 Lakh cr disbursed under #ECLGS (As on 18.08.2020). ECLGS was announced as a part of #AatmaNirbharBharatPackage, to mitigate distress caused due to #COVID19 by providing credit to different sectors, especially MSMEs.”
The scheme is the biggest fiscal component of the Rs 20-lakh cr Self-Reliant India Mission package announced by Finance Minister Nirmala Sitharaman in May.
A Finance Ministry statement said both the public and the private sector banks have contributed to the success of the ECLGS. Loan amounts sanctioned by the Public Sector Banks increased to Rs 76,044.44 crore, out of which Rs 56,483.41 crore has already been disbursed as of August 18.
Similarly, private banks sanctioned loans to the tune of Rs 74,715.02 crore, out of which Rs 45,762.36 crore has already been disbursed.