MSME- 1 lakh Crore Disbursement
MSME loans are also offered to the potential borrowers by the Government of India. The schemes are funded by the Ministry of MSME, in order to fulfil the financing needs of the budding businesses and thereby enhance the socio-economic conditions of the country.
Credit Guarantee Fund Trust for Micro and Small Enterprises (CGTMSE) scheme has been launched to guarantee loans extended by commercial banks to micro and small enterprises (MSEs). Under the schemes, existing or new MSEs are eligible to get Collateral free loans up to Rs. 1 Crore backed by a guarantee provided by CGTMSE.
The finance ministry on Thursday said banks have disbursed more than Rs 1 lakh crore under the Rs 3-lakh crore Emergency Credit Line Guarantee Scheme (ECLGS) for the MSME sector, impacted by the economic slowdown due to COVID-19.
The total amount sanctioned under the scheme by banks is Rs 1,50,759.45 Crore, of which Rs 1,02,245.77 Crore has already been disbursed as of August 18, 2020.
The top lenders under the scheme are:
1. State Bank of India (SBI)
2. Canara Bank
3. Punjab National Bank (PNB)
4. Bank of India
5. Union Bank of India
6. HDFC Bank
Business units of
Maharashtra has received the highest
cumulative sanction of Rs 7,756 crore from banks, while disbursement stood at
Rs 6,007 Crore at the end of August 18.
It is followed by Tamil Nadu with a sanction of
Rs 7,740 Crore, and disbursement of Rs 5,693 crore.
On May 20, the Cabinet approved additional funding of up to Rs 3 Lakh Crore at a concessional rate of 9.25 per cent through ECLGS for the MSME sector.