Banks sanction over Rs 79,000-crore loans to 1.9 mn MSMEs, says govt

have sanctioned of over Rs 79,000 crore till June 20 to 1.9 million and other businesses, of which Rs 35,000 crore has already been disbursed, the Ministry said on Tuesday.

As part of the Aatma Nirbhar Bharat (Self-reliant India) package, the government had last month announced its plan for Rs 3 trillion as additional credit to and small businesses. Such enterprises were eligible to receive up to 20 per cent of their existing borrowing as additional at interest rates which were capped.

The interventions by Government for MSMEs, have been gaining rapid traction. Under the Emergency Credit Line backed by a Government guarantee, from public and private sectors have so far already sanctioned worth over Rs 79,000 crore as of June 20, 2020, of which more than Rs 35,000 crore has already been disbursed, the ministry said in a statement.

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The top lenders under the Scheme are SBI, HDFC Bank, Bank of Baroda, PNB and Canara Bank. This has helped 1.9 million and other businesses restart their businesses post the lockdown, it added.

Separately, under RBI’s Special Liquidity Facility announced in March-April, 2020, SIDBI has sanctioned over Rs 10,220 crore to NBFCs, Micro Institutions and for lending to MSME and small borrowers, the ministry said.

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National Housing Bank (NHB) has sanctioned its entire facility of Rs 10,000 crore to housing companies. This refinance by SIDBI and NHB is in addition to ongoing schemes through which over Rs 30,000 crore has been sanctioned.

Under the Extended Partial Guarantee Scheme for NBFCs and MFI, approvals have crossed Rs 5,500 crore. Transactions for another Rs 5,000 crore are under process of approval, while certain other deals are currently under negotiation, the ministry added.

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