Banks sanction Rs 1.14 trn loans to MSMEs under credit guarantee scheme

Under the ECLGS, the loan amounts sanctioned by PSBs increased to Rs 65,863.63 crore, of which Rs 35,575.48 crore has been disbursed as of July 4

The finance ministry on Tuesday said banks have sanctioned loans of about Rs 1.14 crore under the Rs 3 trillion Emergency Credit Line Guarantee Scheme (ECLGS) for MSME sector reeling under the economic slowdown caused by the Covid-19 pandemic.

However, disbursements against this stood at Rs 56,091.18 crore till July 4 under the 100 per cent ECLGS for micro, small and medium enterprises (MSMEs).

The scheme is the biggest fiscal component of the Rs 20-trillion 'Aatmanirbhar Bharat Abhiyan' package announced by Finance Minister Nirmala Sitharaman in May.

The latest numbers on ECLGS, as released by the finance ministry, comprise disbursements