Finance Ministry: 19 lakh businesses have benefitted from Rs 3-lakh-crore scheme

By: |
Published: June 24, 2020 12:50 AM

Similarly, banks have sanctioned working capital loans of over Rs 79,000 crore as of June 20 under the ECLGS. Of this, more than Rs 35,000 crore has been disbursed, the ministry said.

NBFCs & MFIs are being further helped under an Extended Partial Guarantee Scheme where approvals have crossed Rs 5,500 crore. NBFCs & MFIs are being further helped under an Extended Partial Guarantee Scheme where approvals have crossed Rs 5,500 crore.

The finance ministry on Tuesday said the loans being extended to MSMEs under the Rs 3-lakh-crore Emergency Credit Line Guarantee Scheme (ECLGS) have helped as many as 19 lakh businesses resume operations after lockdown curbs were eased, barely three weeks into its implementation.

It also said Sidbi has sanctioned over Rs 10,220 crore to NBFCs, micro-finance institutitons (MFIs) and banks for lending to small businesses and the National Housing Bank (NHB) has sanctioned its `10,000 crore to housing finance companies under RBI’s special liquidity facility announced recently.

This refinance by Sidbi & NHB, the ministry says, is in addition to ongoing schemes through which over Rs 30,000 crore has been sanctioned.

NBFCs & MFIs are being further helped under an Extended Partial Guarantee Scheme where approvals have crossed Rs 5,500 crore. Transactions for another Rs 5,000 crore are under process while certain other deals are currently under negotiation, the ministry said in a statement.

RBI had in April declared a special refinance facility of Rs 50,000 crore for financial institutions. Of this, Sidbi was allocated Rs 15,000 crore for on-lending or refinancing and NHB Rs 10,000 crore.

Similarly, banks have sanctioned working capital loans of over Rs 79,000 crore as of June 20 under the ECLGS. Of this, more than Rs 35,000 crore has been disbursed, the ministry said.

The scheme, under which the government offers full guarantee on up to 20% additional and collateral-free working capital loans, was rolled out from June 1 to soften the blow to MSMEs battered by the Covid-19 outbreak. Bankers say disbursement is picking up, as the lockdown curbs on the resumption of businesses have been eased substantially over the past three weeks.

The scheme was a major part of the government’s Rs 21-lakh-crore relief package announced last months to help individuals and businesses tide over the impact of the pandemic.

The government has earmarked a corpus of Rs 41,600 crore over the current and the next three financial years to implement this loan guarantee scheme.

Do you know What is Cash Reserve Ratio (CRR), Finance Bill, Fiscal Policy in India, Expenditure Budget, Customs Duty? FE Knowledge Desk explains each of these and more in detail at Financial Express Explained. Also get Live BSE/NSE Stock Prices, latest NAV of Mutual Funds, Best equity funds, Top Gainers, Top Losers on Financial Express. Don’t forget to try our free Income Tax Calculator tool.

Financial Express is now on Telegram. Click here to join our channel and stay updated with the latest Biz news and updates.

Next Stories
1Maharashtra agriculture department files FIR against 13 companies for poor soybean seeds
2Pandemic Times: Growth starts faltering
3Finance Ministry report says green shoots in economy visible, lists indicators that show revival