Categories: Business

Finance Minister's meeting with state-run banks, discuss progress of Credit Guarantee Scheme for MSME

Finance Minister
Image Source: FILE PHOTO, PTI

new Delhi. Finance Minister Nirmala Sitharaman held a review meeting with the public sector bank chiefs on the loan guarantee scheme on Tuesday and asked them for a Rs. 3 lakh crore emergency loan guarantee scheme launched for the Micro, Small and Medium Enterprises (MSME sector). Under asked to speed up the work of disbursing loans. This meeting took place through video conference. During this, the Finance Minister appreciated the efforts being made by the banks in the implementation of the scheme.

In a tweet issued by the Department of Financial Services under the Ministry of Finance, it said, "Public Sector Sector Finance Minister Nirmala Sitharaman ji has sanctioned a loan of Rs 20,000 crore under the Emergency Loan Guarantee Facility Scheme (ECLGS). Banks appreciated. Along with this, he advised banks to be proactive about the scheme at the level of their branches and to keep the form for loans simple and formalities to a minimum.

Earlier in the day, the ministry released data on loans sanctioned to different clusters till June 8. The ministry's tweet said, "As on June 8, 2020, public sector banks sanctioned loans of Rs 1,109.03 crore to MSME centers in 12 states. This loan has been approved under the 100 percent Emergency Credit Facility Guarantee Scheme for MSMEs under the Special Economic Package of the Government. Out of this, a loan of Rs 599.12 crore has been disbursed in 17,904 accounts.

This is the biggest financial announcement under the Rs 20 lakh crore self-sufficient India package announced by Prime Minister Narendra Modi. Finance Minister Nirmala Sitharaman gave detailed information about the package in five installments last month. Subsequently, on 21 May, the Union Cabinet approved additional funding of up to Rs 3 lakh crore for the MSME sector through ECLGS at a concessional rate of 9.25 percent. Under the scheme, 100 percent guarantee will be provided on behalf of National Debt Guarantee Trustee Company (NCGTC). For this, the government will provide funds of Rs 41,600 crore. This fund will be for this financial year and the next three financial years.

This post was published on June 9, 2020 10:20 pm

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