Tamil Nadu has topped the country in terms of sanctions and disbursals under the Emergency Credit Line Guarantee Scheme (ECLGS), announced by the Centre to support the Micro, Small and Medium Enterprises (MSMEs) sector in view of the economic distress caused by the COVID-19 pandemic.
According to data from the Union Finance Ministry, as on June 9, public sector banks have made cumulative sanctions of ₹2,636.76 crore and disbursed ₹1,727.46 crore under the scheme. The sanctions where made across 62,999 accounts and disbursements were made across 34,626 accounts, it added.
The Emergency Credit Line Guarantee Scheme (ECLGS) was unveiled as part of the ₹20 lakh crore comprehensive package announced by Finance Ministry. The scheme is aimed at providing additional credit of up to ₹3 lakh crore, to help MSMEs restart their business.
All business enterprises/MSME borrower accounts with combined outstanding loans of up to ₹25 crore as on February 29, 2020, and annual turnover of up to ₹100 crore for FY 2019-20 are eligible for the scheme. Loans extended under the scheme by banks and NBFCs would be 100% guaranteed by the National Credit Guarantee Trustee Company.
There is a moratorium period of one year on the principal amount, however interest is payable during the moratorium period. The principal shall be repaid in 36 equal instalments after the moratorium period is over. Business enterprises/MSMEs covered under the Pradhan Mantri Mudra Yojana, extended on or before February29, and reported on the MUDRA portal are also eligible to avail of this scheme.
Uttar Pradesh was second in disbursement with a cumulative sanction of ₹2,547.26 crore and cumulative disbursement of ₹1,225.49 crore.
Gujarat saw a cumulative disbursement of ₹908.88 crore, Maharashtra saw disbursement of ₹852.26 crore and Rajasthan saw disbursement of ₹831.13 crore, under the scheme.
