SBI sanctions Rs 20,000 cr loans to MSMEs under credit guarantee scheme

SBI's SME loan portfolio shrunk by 7.27 per cent to Rs 2.67 trillion in March 2020 from Rs 2.88 trillion in March 2019

State Bank of India (SBI) has sanctioned loans worth Rs 20,000 crore to over 400,000 micro, small and medium enterprise (MSME) accounts under the Emergency Credit Line Guarantee Scheme (ECLGS), according to its chairman Rajnish Kumar.

The scheme, funded by the Centre, provides guarantee for 20 per cent additional credit to the bank’s existing eligible borrowers from the MSME segment. It is part of the Rs 20 trillion package crafted to revive the economy disrupted by the lockdown imposed to contain the coronavirus (Covid-19) pandemic.
 

According to SBI’s call with analysts after the Q4FY20 results, it had 800,000 eligible borrowers under