Banks disburse loans of over Rs 1 Lakh crore under Emergency Credit Line Guarantee Scheme

New Delhi: Public and Private Sector banks have sanctioned loans worth over Rs 1.5 lakh crore under the 100% Emergency Credit Line Guarantee Scheme (ECLGS), the Finance Ministry informed on Thursday.

“Under the 100% Emergency Credit Line Guarantee Scheme (ECLGS) backed by a Government of India guarantee, Banks from Public & Private Sectors have sanctioned loans worth over Rs. 1.5 lakh crore as of 18th August, 2020, of which more than Rs 1 lakh crore has already been disbursed. The ECLGS was announced by the Government as a part of Aatma Nirbhar Bharat Package, to mitigate the distress caused by lockdown due to COVID-19 by providing credit to different sectors, especially MSMEs,” the ministry said in a statement.

The top lenders under the Scheme are State Bank of India (SBI), Canara Bank, Punjab National Bank (PNB), Bank of India, Union Bank of India and HDFC Bank Ltd.

Under the ECLGS, Public Sector Banks (PSBs) have sanctioned loans of Rs 76,044.44 crore, out of which Rs 56,483.41 crore has already been disbursed.  Whereas Private Sector Banks have sanctioned loans of Rs 74,715.02 crore out of which Rs 45,762.36 crore has already been disbursed. 

As part of the Aatmanirbhar Bharat package, government had announced its plans for Rs 3 lakh crore as additional credit to MSMEs and small businesses. Such enterprises were to be eligible to receive upto 20 percent of their existing borrowing as additional loans at interest rates which were capped.