January 23, 2021

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Banks disburse loans of over Rs 1 Lakh crore underneath Emergency Credit score Line Assure Scheme | Financial system Information

Banks disburse loans of over Rs 1 Lakh crore under Emergency Credit Line Guarantee Scheme

New Delhi: Public and Non-public Sector banks have sanctioned loans price over Rs 1.5 lakh crore underneath the 100% Emergency Credit score Line Assure Scheme (ECLGS), the Finance Ministry knowledgeable on Thursday.

“Beneath the 100% Emergency Credit score Line Assure Scheme (ECLGS) backed by a Authorities of India assure, Banks from Public & Non-public Sectors have sanctioned loans price over Rs. 1.5 lakh crore as of 18th August, 2020, of which greater than Rs 1 lakh crore has already been disbursed. The ECLGS was introduced by the Authorities as part of Aatma Nirbhar Bharat Bundle, to mitigate the misery brought on by lockdown because of COVID-19 by offering credit score to completely different sectors, particularly MSMEs,” the ministry stated in a press release.

The highest lenders underneath the Scheme are State Financial institution of India (SBI), Canara Financial institution, Punjab Nationwide Financial institution (PNB), Financial institution of India, Union Financial institution of India and HDFC Financial institution Ltd.

Beneath the ECLGS, Public Sector Banks (PSBs) have sanctioned loans of Rs 76,044.44 crore, out of which Rs 56,483.41 crore has already been disbursed.  Whereas Non-public Sector Banks have sanctioned loans of Rs 74,715.02 crore out of which Rs 45,762.36 crore has already been disbursed. 

As a part of the Aatmanirbhar Bharat package deal, authorities had introduced its plans for Rs three lakh crore as extra credit score to MSMEs and small companies. Such enterprises had been to be eligible to obtain upto 20 % of their current borrowing as extra loans at rates of interest which had been capped.

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