Banks have allocated loans of more than Rs 79,000 crore to 19 lakh MSMEs and other businesses till June 20.Out of the complete allocation, Rs 35,000 crore has already been disbursed, said the Finance Ministry.
Last month, the centre had announced its plan for Rs 3 lakh crore as additional credit to MSMEs and small businesses, as part of the Aatma Nirbhar Bharat (Self-reliant India) package.
Such enterprises were eligible to receive up to 20 percent of their existing borrowing as additional loans at interest rates which were capped.
“The interventions by Government for MSMEs, have been gaining rapid traction. Under the Emergency Credit Line backed by a Government guarantee, Banks from public and private sectors have so far already sanctioned loans worth over Rs 79,000 crore as of June 20, 2020, of which more than Rs 35,000 crore has already been disbursed,” said the ministry in a statement.
Also Read: RBI extends loan moratorium by 3 more months
The top banks under the Scheme are SBI, HDFC Bank, Bank of Baroda, PNB and Canara Bank. This initiative has helped 19 lakh MSMEs & other businesses in restarting their businesses post the lockdown, it added.