InvestorQ : How much have Indian banks disbursed from the Emergency Scheme for the MSME sector?
Arti Chavan made post

How much have Indian banks disbursed from the Emergency Scheme for the MSME sector?

Answer
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4 months ago


SBI announced that it had disbursed Rs.8700 crore out of the total of Rs.15,000 crore sanctioned by SBI under the Emergency Credit Line Guarantee Scheme (ECLGS) for MSME sector. This was basically designed to help the small and medium size sector getting over the pain of the Coronavirus syndrome. The total allocation announced under the ECLGS by the government was Rs.300,000 crore. The banks may not be too worried about lending to the MSMEs in this case as there is 100% guarantee given by the National Credit Guarantee Trustee Company (NCGTC). The scheme gives the lenders 100% guarantee for any losses suffered by them due to non-repayment. This scheme is applicable to MSME borrowers with outstanding credit up to Rs.25 crore. If all the PSU banks are added up, they have till date sanctioned Rs.32,000 crore under the ECLGS and have already disbursed Rs.16,000 crore. This includes the SBI credit numbers also. Some of the major lenders apart from SBI in this ECLGS scheme are Bank of Baroda, PNB, Union Bank and Bank of India.