PSBs Disburse Rs 16,031 cr Loan To MSMEs Under Emergency Credit Guarantee Scheme

New Delhi, June 16: The Finance Ministry on Tuesday said public sector banks have disbursed Rs 16,031.39 crore till June 12, under the Rs 3-lakh crore Emergency Credit Line Guarantee Scheme (ECLGS) for the MSME sector, adversely affected due to COVID-19 crisis.

Public sector banks (PSBs) have sanctioned loans worth Rs 32,049.86 crore under the 100 per cent ECLGS for the Micro, Small & Medium Enterprise (MSME) sector starting June 1. The scheme is the biggest fiscal component of Rs 20 lakh crore Atmanirbhar Bharat Abhiyan package announced by Finance Minister Nirmala Sitharaman last month.

"As of 12 June 2020, #PSBs have sanctioned loans worth Rs 32,049.86 crore under the 100 per cent Emergency Credit Line Guarantee Scheme, out of which Rs 16,031.39 crore has already been disbursed," Sitharaman said in a tweet.

On May 21, the Cabinet had 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.