InvestorQ : How does Bank of Baroda propose to offer Rs.12,000 crore funding to MSMEs?
Arti Chavan made post

How does Bank of Baroda propose to offer Rs.12,000 crore funding to MSMEs?

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Crowny Pinto answered.
5 months ago
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Bank of Baroda plans to offer up to Rs.12,000 crore as loans to MSMEs under the Rs 3 lakh crore Emergency Credit Line Guarantee Scheme (ECLGS) announced by government of India. This is a 100% credit guarantee scheme worth Rs 3 lakh crore to support MSMEs hit by the COVIDI-19 crisis. This would be applicable to borrowers with outstanding credit of up to Rs.25 crore with annual turnover of less than Rs.100 crore. In the case of BOB, they have a portfolio of Rs.60,000 crore meeting these conditions so they would be able to offer 20% or up to Rs.12,000 crore under this facility. For this facility, 100% guarantee coverage will be provided by the National Credit Guarantee Trustee Company (NCGTC) for additional funding of up to Rs.300,000 to eligible MSMEs. This can be structured as additional working capitl or as additional term loan.

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