FM Sitharaman reviews progress of credit guarantee scheme for MSME

Finance Minister Nirmala Sitharaman called for a meeting on Tuesday in a bid to review the credit guarantee scheme with top brass of public sector banks, and asked them to accelerate the loan disbursement under the Rs 3-lakh crore ECLGS for MSME sector, severely impacted by the coronavirus-induced lockdown.

The meeting on Emergency Credit Line Guarantee Scheme (ECLGS) was orgnanised via a video conference, and the minister appreciated the efforts of lenders in execution of the scheme.

Nirmala Sitharaman“Hon’ble FM @nsitharaman Ji complimented PSBs on rapid traction for achieving sanctions of Rs 20,000 Cr under ECLGS. Also advised to maintain proactive outreach at branch level and keep Forms for ECLGS simple & formalities at minimum,” Department of Financial Services said in a tweet.

“PSBs to continue focus on sanction & reaching out to eligible MSMEs. To also target meeting credit needs of other businesses,” it stated.

In Tuesday only, the ministry revealed cluster wise data of loans sanction till June 8.

“As of 8 June 2020, #PSBs have sanctioned loans worth Rs 1,109.03 cr for #MSME hubs in 12 States under the 100% Emergency Credit Line Guarantee Scheme, of which Rs 599.12 cr has already been disbursed to 17,904 accounts,” the minister tweeted.

The scheme is the biggest fiscal section of the Rs 20-lakh crore Self-Reliant India Mission Economic package announced by Sitharaman last month.

On May 21, the Cabinet had Okayed additional funding of up to Rs 3 lakh crore at a rebated rate of 9.25 percent via ECLGS for the MSME sector.

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