Sanctions under emergency credit line guarantee scheme cross Rs 79,000 crore

To help micro, small and medium enterprises (MSMEs) tide over challenges created by the lockdown after Covid-19 outbreak, public and private sector banks have sanctioned loans worth Rs 79,000 crore of which more than Rs 35,000 crore has already been disbursed, the government said on Tuesday.

This has been done under the emergency credit line backed by a government guarantee. The top lenders under the scheme are State Bank of India, HDFC Bank, Bank of Baroda, Punjab National Bank and Canara Bank.

"This has helped 19 lakh MSMEs and other businesses restart their businesses post the lockdown," said a statement issued by the Ministry of Finance.

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

Separately, under the Reserve Bank of India's special liquidity facility announced in March and April, SIDBI has sanctioned over Rs 10,220 crore to non-banking finance compes, microfinance institutions and banks for lending to MSMEs and small borrowers.

The National Housing Bank (NHB) has sanctioned its entire facility of Rs 10,000 crore to housing finance compes.

"The refinance by SIDBI and NHB is in addition to ongoing schemes through which over Rs 30,000 crore has been sanctioned. NBFCs and micro finance institutions are being further helped under the extended partial guarantee scheme where approvals have crossed Rs 5,500 crore," the statement said.

Transactions for another Rs 5,000 crore are under process of approval while certain other deals are currently under negotiation, it added.

( With inputs from ANI )