Banks sanction Rs 1.3 trn loans to MSMEs under credit guarantee scheme

The finance ministry on Friday said banks have sanctioned loans of about Rs 130,491 crore under the Rs 3-trillion Emergency Credit Line Guarantee Scheme (ECLGS) for MSME sector, hit hard by the economic slowdown caused by Covid-19 pandemic.

However, disbursements against this stood at Rs 82,065 crore till July 23 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 the ECLGS, as released by the finance ministry, comprise disbursements by all 12