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Financial institutions sanction Rs 1.38 trn financial loans to MSMEs less than credit assure scheme

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The Finance Ministry on Tuesday explained banking companies have sanctioned financial loans of about Rs 1,37,586 crore under the Rs 3-trillion Emergency Credit Line Assurance Plan (ECLGS) for MSME sector, strike tricky by the economic slowdown thanks to Covid-19 pandemic.&#13
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On the other hand, disbursements in opposition to this stood at Rs 92,090.24 crore until August 3 below the 100 per cent ECLGS for micro, compact and medium enterprises (MSMEs).&#13
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The scheme is the major fiscal ingredient of the Rs 20-trillion Aatmanirbhar Bharat Abhiyan package deal declared by Finance Minister Nirmala Sitharaman in May possibly.&#13
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The most recent quantities on the ECLGS, as unveiled by the Finance Ministry, consist of disbursements by all 12 community sector banks (PSBs), 23 personal banks and 30 non-banking monetary businesses (NBFCs).&#13
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Previous 7 days, the authorities widened the scope of the Rs 3-trillion MSME credit assure plan by doubling the higher ceiling of financial loans outstanding to Rs 50 crore and together with specified specific financial loans provided to pros like medical practitioners, lawyers and chartered accountants for enterprise uses under its ambit.&#13
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The scheme is now applicable for organizations with an annual turnover of Rs 250 crore as in opposition to the earlier Rs 100 crore and the maximum total of confirmed emergency credit line (GECL) funding below the scheme doubled to Rs 10 crore.&#13
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“As of 03 Aug 2020, the full volume sanctioned under the 100 per cent Emergency Credit Line Assure Scheme by #PSBs and private banking companies stands at Rs 1,37,586.54 crore, of which Rs 92,090.24 crore has previously been disbursed,” the finance minister said in a tweet.&#13
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Under the ECLGS, the loan quantities sanctioned by PSBs greater to Rs 72,820.26 crore, of which Rs 52,013.73 crore has been disbursed as of August 3, she explained.&#13
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At the similar time, personal sector financial institutions have sanctioned Rs 64,766 crore and disbursed Rs 40,076 crore.&#13
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“Compared to 23 July 2020, there is an maximize of Rs 7,094.75 crore in the cumulative amount of money of financial loans sanctioned & an increase of Rs 10,025.23 crore in the cumulative sum of loans disbursed by equally #PSBs and personal sector banks blended as on 03 Aug 2020,” Sitharaman explained.&#13
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Among the banks, SBI has sanctioned the greatest amount of money at Rs 21,121 crore of loans and disbursed Rs 16,047 crore. It is adopted by Punjab National Bank, which has sanctioned Rs 9,809 crore. However, its disbursements stood at Rs 6,351 crore as of August 3.&#13
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On May perhaps 20, the Cabinet permitted added funding of up to Rs 3 trillion at a concessional rate of 9.25 for each cent as a result of ECLGS for MSME sector.&#13
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Below the scheme, 100 for every cent assure coverage is presented by the Nationwide Credit Warranty Trustee Business (NCGTC) for extra funding of up to Rs 3 trillion to eligible MSMEs and interested Micro Units Advancement and Refinance Agency (MUDRA) debtors in the kind of a GECL facility.&#13
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For this purpose, a corpus of Rs 41,600 crore was set up by the authorities, spread around the present-day and future 3 monetary several years.&#13
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The plan will be applicable to all loans sanctioned below GECL facility in the course of the period of time from the day of announcement of the plan to October 31 or till the total of Rs 3 trillion is sanctioned underneath GECL, whichever is previously.&#13
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All MSME borrower accounts with an fantastic credit of up to Rs 50 crore as on February 29, which were less than or equal to 60 times earlier due as on that day, i.e., common, SMA- and SMA-1 accounts, and with an annual turnover of up to Rs 250 crore are suitable for GECL funding beneath the plan.&#13

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