Loans worth over ₹1 lakh crore sanctioned under ECLGS

01 Jul '20

1 min read

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Under the 100 % Emergency Credit Line Guarantee Scheme (ECLGS) backed by a Government guarantee, public and private sector banks have sanctioned loans worth over ₹1 lakh crore as of June 26, 2020, of which more than ₹45,000 crore has already been disbursed. This would help over 30 lakh units of MSMEs & other businesses restart their businesses post-lockdown.

Public sector banks have sanctioned loans of ₹57,525.47 crore whereas private sector banks have sanctioned loans of ₹44,335.52 crore under ECLGS. The top lenders under the scheme are the State Bank of India (SBI), Bank of Baroda, Punjab National Bank (PNB), Canara Bank and HDFC, according to a ministry of finance release.

As part of the Aatmanirbhar package, the Indian government had announced its plans for ₹3 lakh crore as additional credit to MSMEs and small businesses. Such enterprises were to be eligible to receive up to 20 per cent of their existing borrowing as additional loans at interest rates which were capped.

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