Lawstreet Journal

SBI Disburses Rs. 8700 Crores under ECLGS Scheme to MSMEs

Lawstreet Journal 19 Jun 2020 1:01am

Image courtesy: Lawstreet Journal Business SBI Disburses Rs. 8700 Crores under ECLGS Scheme to MSMEs

On Tuesday (16 June 2020), State Bank of India announced that it disbursed Rs. 8,700 crores to the MSME (micro, small and medium enterprises) sector, under the Emergency Credit Line Guarantee Scheme (ECLGS).

ECLGS is a Rs. 3 lakh crore fiscal component of the mega Rs. 20 lakh crore package announced by the central government in May. Under this scheme, the National Credit Guarantee Trustee Company (NCGTC) will provide 100 percent guarantee coverage for up to Rs. 3 lakh crores to eligible MSMEs and MUDRA borrowers in the form of Guaranteed Emergency Credit Line (GECL) facility.

Following the directions of the Finance Ministry, SBI and other banks rolled out the GECL to support MSMEs and other business enterprises in accordance with the guidelines laid down by the NCGTC. For collateral loans, the borrower can apply for a tenor of 4 years. However, no pre-payment penalty shall be charged in case of early repayment. There will be a moratorium of 12 months on the principal repayment.

“The bank has sanctioned GECL aggregating Rs. 15,000 crores to 1.5 lakh MSME customers. SBI so far has disbursed loans worth Rs. 8,700 crores,” SBI said in a statement. Additional supportive measures such as COVID Emergency Credit Line, re-assessment of working capital limits, and restructuring of advances are also being made available to MSME customers, it added.

"MSMEs formed a very crucial part of the announcements made under the 'Aatmanirbhar Bharat Abhiyan' by the Government of India wherein MSMEs were defined. To empower them in the wake of the… Continue Reading...

Tagged: State Bank Of India  
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