Banks sanctioned easy 1.5 lakh crore small business Easy Loans | Latest India News


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Commercial banks have sanctioned ??1.5 lakh crore and disbursed two-thirds of the amount between small businesses and individual professionals under the ??3 lakh crore emergency work Easy Loans facility to help them overcome the crisis triggered by the Covid-19 pandemic, an official statement said on Thursday.

“Under the 100% Emergency Credit Lines Guarantee Scheme (ECLGS) backed by a guarantee from the Indian government, both public and private sector banks have sanctioned loans worth more than ??1.5 lakh crore as of August 18, 2020, of which over ??1 lakh crore has already been disbursed, ”said the statement from the Ministry of Finance Easy Loans

On May 20, the Union Cabinet approved the ECGLS, which can be ??3 lakh crore, for approximately five months ending October 31. The program provides for an easy additional working capital loan at a concessional interest rate to an existing borrower who is not in default.

ECGLS is one of the key elements of the ??20 lakh crore economic stimulus plan under the Atmanirbhar Bharat Abhiyan (Autonomous Indian Initiative) launched in mid-May, which provided additional working capital financing of 20% of the credit outstanding as of February 29 under the form of a term loan to units with up to ??25 crore in circulation and earnings of up to ??100 crores.

The government may also consider extending the Oct. 31 deadline to qualify for the emergency work loan facility, a finance ministry official said on condition of anonymity. The finance ministry had already extended the scope of the provision by improving the eligibility criteria to include larger units and individual professionals such as doctors and accountants.

The government expects a ??1 lakh crore loan withdrawal by newly eligible individual professionals. Some leeway may still exist, which could prompt the government to extend the deadline, the official cited above said.

According to the statement from the Ministry of Finance, within the framework of the ECGLS, the public sector banks (PSB) sanctioned loans worth ??76,044.44 crore, of which ??56,483.41 crore has already been disbursed. Private sector banks have so far sanctioned ??74,715.02 crore loan of which ??45,762.36 crore has already been disbursed, he said.

“The main lenders in the program are the State Bank of India (SBI), Canara Bank, Punjab National Bank (PNB), Bank of India, Union Bank of India and HDFC Bank Ltd,” he said. he declares.

The National Credit Guarantee Trustee Company Ltd, which issued the ECGLS operational guidelines on June 2, said the interest rate under the program is capped at 9.25% per annum for banks and institutions. financial. For non-bank finance companies, the interest rate should not exceed 14% per annum. NCGTC is a wholly owned Union government company formed in March 2014 to act as a trustee for several credit guarantee funds.

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