Coimbator

Erode District exceeds loan target of ₹ 500 crore to MSMEs

Under the Emergency Credit Line Guarantee Scheme (ECLGS), the district surpassed the loan target of ₹ 500 to Micro, Small and Medium Enterprises (MSMEs) and sanctioned ₹ 524.63 crore so far, said Collector C. Kathiravan.

To overcome the economic distress caused by COVID-19 pandemic, the Central Government launched the scheme, ECLGS, which enables 100% collateral free loans to MSMEs. Every eligible MSME gets a pre-approved sanction limit upto 20% of loan outstanding as on February, 29, 2020 which is in the form of additional working capital term loan. The MSMEs can commence production, undergo expansion, install new machinery and utilise the fund for working capital under this scheme.

Mr. Kathiravan said that necessary steps were taken through the Lead Bank and District Industries Centre for lending loan under this scheme to all the eligible MSMEs who have already availed loan with the banks. During the Chief Minister’s visit to the district on July 17, 8,329 MSMEs had availed loan under the scheme for ₹ 349.81 crore. During interaction with industrial associations, the Principal Secretary to Government, MSME Department, fixed a target of ₹ 500 crore loan under this scheme for the district. “Effective interactions were held with industrial associations and bankers regularly and hence a sum of ₹ 524.63 crores loans were sanctioned to 11,999 MSMEs in the district, he added.

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Printable version | Sep 20, 2020 7:41:39 PM | https://www.thehindu.com/news/cities/Coimbatore/erode-district-exceeds-loan-target-of-500-crore-to-msmes/article32654144.ece

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