Extend credit beyond MSMEs, Finance Minister Nirmala Sitharaman tells banks
So far, the public sector banks santioned loans worth Rs 1,109.03 cr for MSME hubs
Published: 10th June 2020 10:17 AM | Last Updated: 10th June 2020 10:17 AM | A+A A-
Union Finance Minister Nirmala Sitharaman (File photo| Anil Shakya, EPS)
NEW DELHI: Finance minister Nirmala Sitharaman told bankers to focus on Emergency Credit Line Guarantee Scheme (ECLGS) and has asked the lenders to extend the credit to other businesses than Micro Medium and Small Industries (MSMEs). While addressing a review meeting on credit guarantee scheme with heads of public sector banks, which was announced as a measure for MSMEs under AtmanitbharBharat Package, the finance minister appreciated the efforts of banks in execution of the scheme.
According to the Department of Financial Services, private sector banks (PSBs) have been asked to continue focus on sanction and reaching out to eligible MSMEs. However, they also need to target meeting the credit requirements of businesses, other than MSMEs.
The latest data shared by the government shows that a total of Rs 8,320 crore has been disbursed so far under emergency lending scheme pan India, out of which Rs 599 crore has been given for MSMEs.
“As of June 8, 2020, PSBs have sanctioned loans worth Rs 1,109.03 crore for MSME hubs in 12 States under the 100 per cent Emergency Credit Line Guarantee Scheme, of which Rs 599.12 crore has already been disbursed to 17,904 accounts,” Sitharaman tweeted from the official twitter handle. 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 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 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, it further added.Under the scheme, 100 per cent guarantee coverage are being provided by the National Credit Guarantee Trustee Company for additional funding of up to Rs 3 lakh crore to eligible
MSMEs and interested
Micro Units Development and Refinance Agency (MUDRA) borrowers, in the form of a guaranteed emergency credit line facility. For this purpose, a corpus of Rs 41,600 crore was provided by the government, spread over the current and next three financial years.
