Loans worth Rs 1 lakh crore disbursed under ECLGS to offset COVID-19 distress

New Delhi [India], Aug 20 (ANI): Banks from public and private sectors have sanctioned loans worth over Rs 1.5 lakh crore under the Emergency Credit Line Guarantee Scheme (ECLGS) of which more than Rs 1 lakh crore has already been disbursed, the government said on Thursday.

The ECLGS was announced as a part of ‘Atmanirbhar Bharat’ package to mitigate the distress caused by lockdown due to COVID-19 pandemic by providing credit to different sectors, especially micro, small and medium enterprises (MSMEs).

Public sector banks have sanctioned loans of Rs 76,044.44 crore of which Rs 56,483.41 crore was disbursed till August 18, according to a statement issued by the Ministry of Finance.

Private sector banks have sanctioned loans of Rs 74,715.02 crore of which Rs 45,762.36 crore has been disbursed.

The top lenders are State Bank of India, Canara Bank, Punjab National Bank, Bank of India, Union Bank of India and HDFC Bank.

On May 13, Finance Minister Nirmala Sitharaman had announced a series of liquidity measures for millions of small businesses reeling under the impact of COVID-19 lockdown, including collateral-free automatic loans worth Rs 3 lakh crore.

Borrowers with up to Rs 25 crore outstanding and Rs 100 crore turnover are eligible. These loans have a four-year tenure and a moratorium for 12 months on principal payment.

There is a 100 per cent credit guarantee cover to banks and non-banking finance companies on principal and interest. The scheme can be availed till October 31.

The scheme is likely to enable 45 lakh MSME units to resume business activity and also safeguard jobs which are at risk as the coronavirus-battered economy is set to go into its first annual contraction in four decades. (ANI)

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