Credit and Finance for MSMEs: State Bank of India, Bank of Baroda, Bank of India, are some of the PSU banks which are offering MSME loans under Prime Minister Narendra Modi’s Atma Nirbhar Bharat economic stimulus package.
Credit and Finance for MSMEs: State Bank of India, Bank of Baroda, Bank of India, are some of the PSU banks which are offering MSME loans under Prime Minister Narendra Modi’s Atma Nirbhar Bharat economic stimulus package. SBI has so far cleared maximum number of loans at 37,638 as of June 1. The Finance Ministry recently said that public sector undertaking (PSU) banks have sanctioned loans over Rs 10,000 crore to MSMEs under the government’s initiative to help businesses tide over the coronavirus pandemic. “As of 1 June 2020, PSBs have sanctioned loans worth Rs 10,361.75 crore under the 100% Emergency Credit Line Guarantee Scheme,” the Ministry of Finance said in a tweet on Wednesday. Southern state Tamil Nadu got the maximum loans sanctioned at over Rs 1,32,747 lakh,, followed by Uttar Pradesh and Gujarat.
Other PSU banks which sanctioned loans are Bank of Maharashtra, Canara Bank, Central Bank of India, Indian Bank, Indian Overseas Bank, Punjab and Sind Bank, Punjab National Bank, UCO Bank and Union Bank of India.
Top 5 banks in loan disbursement
While State Bank of India led the pack with it sanctioning loans worth Rs 8,899 crore loans, it has already disbursed loans worth Rs 3,526 crore. Following SBI are Union Bank of India, Bank of India, Canara Bank and Central Bank of India in terms of loan disbursement.
In states, Tamil Nadu is leading in loan disbursements with the state having disbursed about Rs 75,230 lakh loans followed by Uttar Pradesh, Andhra Pradesh, Maharashtra and Rajasthan.
While loans worth Rs 10,000 crore were sanctioned, the actual disbursal is a little under 40% at nearly Rs 3,900 crore. The government had earlier announced Rs 3 lakh crore Emergency Credit Line Guarantee scheme to boost India’s MSME sector. Under this scheme, the government is providing collateral free loans. The MSME loan scheme is one of the biggest components of PM Modi’s Rs 21 lakh crore economic relief package. Meanwhile, Union Bank of India sanctioned over 14,000 crore loans under the government’s Emergency Credit Line on day 1. “In line with Government initiatives, Union Bank of India has launched Union Guaranteed Emergency Credit Line (UGECL) to enable Mudra beneficiaries/ MSME / business units to tide over their liquidity crisis subject to eligibility,” the bank said in a statement. Under the Emergency Credit Line Guarantee scheme (ECLGS), the MSMEs will be provided 100% guarantee coverage for additional working capital term loan up to 20% of their entire outstanding credit up to Rs 25 crore. Micro, Small and Medium Enterprises (MSMEs), which have an annual turnover of up to Rs 100 crore, are eligible for GECL funding.