Banks allocate loan worth Rs 79k crore to 19 lakh MSMEs

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.

loans

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.

The Banking & Finance Post is an initiative of Elets Technomedia Pvt Ltd, existing since 2003.
Now, Elets' YouTube channel, a treasure of premier innovation-oriented knowledge-conferences and awards, is also active. To Subscribe Free, Click Here.

Get a chance to meet the Who's who of the BFSI industry. Join Us for Elets BFSI Nextgen Virtual Summit and explore business opportunities. Like us on Facebook, connect with us on LinkedIn and follow us on Twitter, Instagram & Pinterest.