Credit and Finance for MSMEs: The overall amount sanctioned till Monday stood at Rs 1,109 crore for 26,916 accounts across MSME hubs.
Credit and Finance for MSMEs: Rs 599.12 crore has been disbursed by the public sector banks to 17,904 MSME accounts as of June 8, 2020 under Rs 3 lakh crore collateral-free Emergency Credit Line Guarantee Scheme (ECLGS), according to a tweet by Finance Minister Nirmala Sitharaman’s office on Tuesday. These MSMEs are based across 21 cities or MSME hubs in 12 states. The overall amount sanctioned till Monday stood at Rs 1,109 crore for 26,916 accounts across these hubs. The credit scheme, part of the Rs 20 lakh crore economic package, was approved by the cabinet, chaired by PM Modi, last month.
Hubs with the highest disbursement to MSMEs were Tamil Nadu’s Coimbatore (Rs 143.7 crore in 1,758 accounts) and Tiruppur (Rs 97.2 crore in 760 accounts) followed Durgapur (Rs 61.4 crore in 2,005 accounts) in West Bengal, Uttar Pradesh’s Kanpur (Rs 60.5 crore in 1,498 accounts), and Gujarat’s Surat (Rs 39.7 crore in 992 accounts) and Rajkot (Rs 33.8 crore in 981 accounts). Other states included Andhra Pradesh, Assam, Chhatisgarh, Maharashtra, Odisha, Punjab, Telangana, and Karnataka. The data was shared by Sitharaman in the tweet.
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Overall, the amount disbursed to businesses including MSMEs across India as of June 5 under the credit scheme stood at Rs 8,320 crore, Sitharaman’s office had tweeted earlier. This was 113 per cent up from Rs 3,892 crore disbursed as of June 1, 2020, even as the sanctioned amount had grown 70 per cent from Rs 10,361 crore to Rs 17,705 crore.
MSMEs having up to Rs 25 crore in outstanding credit as on February 29, 2020, less than or equal to 60 days past due as on the date and up to Rs 100 crore turnover can apply for the Rs 3 lakh crore scheme. The loan will have a tenor of four years with a 12-month moratorium on principal payments while 100 per cent credit guarantee is provided to banks and NBFCs for lending to small businesses. According to Sitharaman, 45 lakh Covid-hit units will be able to resume business activity and secure jobs.
Meanwhile, MSMEs have also been filing their grievances around marketing, funding, export, government payments, banks etc. on the government’s newly launched grievances portal Champions. According to the MSME Minister Nitin Gadkari, “As per the eight-day-old data from the portal, which was launched on May 9, 20,461 grievances were received out of which 16,019 grievances have been resolved,” he said in a video conference with the members of The Institute of the Company Secretaries of India on Monday.