AHMEDABAD: Public sector banks have disbursed Rs 6,916 crore in Gujarat under the central government’s emergency credit line guarantee scheme (ECLGS), accounting for around 9% of the total disbursements made across the country.
The state ranks fourth in terms of disbursals under the scheme after Tamil Nadu, Maharashtra and Uttar Pradesh, states a recent report by the State Level Bankers’ Committee (SLBC).
As on December 4, 2020, a cumulative amount of Rs 7,842 crore was sanctioned under the scheme, which was announced as part of Centre’s Atmanirbhar Bharat package and is essentially aimed at helping Covid-hit micro, small and medium enterprises (MSMEs) get back on their feet.
In addition to MSMEs, professionals such doctors, chartered accountants, lawyers, among others, are also eligible to take loans for professional purposes under the scheme.
As many as 95,153 MSME units across the state have received the credit, while the number of units given sanctions for credit is 1.54 lakh.
According to the report, the amount of Rs 6,916 crore does not reflect the disbursals made by the private banks. If private banks’ contribution to the scheme is factored in, the total amount sanctioned and disbursed under the scheme by all banks within the state works out to be Rs 11,641 crore and Rs 9,939 crore, respectively.
Bankers also opined that significant disbursement under ECLGS pushed up overall advances made to the MSME sector of the state. The total advances to MSMEs increased by 9% or Rs 10,956 crore for the second quarter ending on September 30, 2020. The advances stood at 1.39 lakh crore by the end of the second quarter of the current fiscal.
The report further states that about Rs 85,240 crore were sanctioned across the country under the scheme, of which Rs 75,533 crore had been disbursed by December 4.
The sanctioned amount and disbursement stood at Rs 7,480 crore and Rs 5,688 crore respectively by September 3, 2020.