Banks sanction loans worth over Rs 1.5 lakh crore under ECLGS for MSME
The finance ministry declared, Public and Private Sector Banks have disbursed loans over Rs 1.5 lakh crore under the Emergency Credit Line Guarantee Scheme (ECLGS) for the MSME sector. The top three lenders under the scheme are the State Bank of India, Canara Bank, and Punjab National Bank.
What is the Emergency Credit Line Guarantee Scheme?
Amid the Covid-19 pandemic, to provide support to the business, the Finance Ministry had announced collateral-free loans up to Rs. 3 lakh crore.
The 100% collateral free MSME loan is known as the Emergency Credit Line Guarantee Scheme. The National Credit Guarantee Trustee Company provides this loan to Banks, Financial institutions, and to Non-banking financial Companies.
India’s MSME sector
The number of registered MSMEs has reportedly increased by about 18% in FY20. A total of 6.33 crores of MSMEs in India provide employment to 11 crore population.