81 lakh MSMEs profit from Modi govt’s assured loans; over Rs 2 lakh cr already sanctioned
The finance ministry at present mentioned that 40 lakh MSME accounts have obtained Rs 1.58 lakh crore until December 4.
Credit score and Finance for MSMEs: Almost 81 lakh MSMEs have taken benefit of Prime Minister Narendra Modi’s Emergency Credit score Line Assure Scheme (ECLGS) underneath the Atmanirbhar Bharat package deal. The banks have sanctioned round Rs 2.05 lakh crore out of the Rs 3 lakh crore pledged underneath the scheme to assist the MSME sector to revive from the coronavirus woes. The finance ministry at present mentioned that 40 lakh MSME accounts have obtained Rs 1.58 lakh crore until December 4. As a part of the Aatmanirbhar Bharat Abhiyan 3.0 introduced final month, ECLGS scheme has been prolonged by ECLGS 2.0 for the 26 stress sectors and well being care sector with credit score excellent of above Rs 50 crore and as much as Rs 500 crore as on February 2020, FinMin tweeted.
Nonetheless, the extra liquidity afforded by the scheme for the 26 affected sectors could be a lot increased at nearly 10 occasions of money movement contraction as a result of Covid -19 induced pandemic, a Crisil report mentioned. Whereas the businesses in high-resilience sectors reminiscent of dairy, info expertise, FMCG, chemical compounds, and prescription drugs are much less impacted, with the decline of their money movement restricted to 10%, they’re additionally anticipated to learn from the ECLGS scheme.
The loans supplied underneath ECLGS 2.0 have a five-year tenor, with a 12-month moratorium on compensation of principal and all the scheme is legitimate until the tip of the present fiscal 12 months 2020-21. In additional help to the business, energy, building, actual property, textiles, prescription drugs, logistics, cement, auto elements, and accommodations are a number of the sectors recognized by the Kamath Committee for one-time debt restructuring.
It’s to be famous that the RBI had arrange the committee headed by former ICICI Financial institution chairman Okay V Kamath for suggesting monetary parameters to be factored within the decision plans underneath the ‘Decision Framework for COVID-19 associated Stress’ together with sector-specific benchmark ranges for such parameters. In the meantime, the finance ministry apprised that Rs 775 crore have been launched to Small Industries Improvement Financial institution of India (SIDBI) underneath the Rs 1,500 crore ‘Curiosity Subvention for MUDRA-Shishu Mortgage’. Out of which, Rs 206.73 crore has already disbursed to Member Lending Establishments (MLIs) as a part of the primary tranche for the instant launch of curiosity subvention profit.