MSME: Government Banks Freezing Loans, Distributed Rs 12,200 Crore
The most important thing for the MSME (micro, small and medium enterprises) sector is loan. In the time of Corona crisis, loans for MSMEs are even more important. Government banks have come forward to help MSMEs in this crisis situation. Government banks have allocated a loan of Rs 12,200.65 Crorefor the MSME sector under the Rs 3 Lakh Crore Emergency Credit Line Guarantee Scheme (ECLGS). According to Finance Minister Nirmala Sitharaman, under the ECLGS, which started from June 1, public sector banks have approved a total loan of Rs 24,260.65 Crore so far. Last month, the Finance Minister announced the ECLGS for the troubled MSME sector, the largest fiscal component of the Rs 20 lakh Crore relief package.
Cabinet shows green signal
Following the Finance Minister’s announcement last month, the Cabinet on 21 May approved financing of up to Rs 3 lakh Crorefor the MSME sector through ECLGS at a concessional rate of 9.25 per cent. 100% Guarantee by National Credit Guarantee Trustee Company (NCGTC) for an additional amount of Rs 3 lakh Crore to the eligible MSMEs and aspiring Micro Units Development and Refinance Agency (MUDRA) borrowers under the scheme as Guaranteed Emergency Credit Line (GECL) facility. Coverage will be provided.
41600 Crore rupees given by the government
For the purpose of guaranteeing the NCGTC, the government has provided Rs 41600 Crore for the current and next three financial years. The scheme will remain in force till 31 October from the date of announcement or till the allocation of loan up to Rs 3 lakh crore, whichever is earlier. Start-ups and small businesses across the country are increasingly applying to register themselves as MSMEs on the MSME Ministry Registration Portal, the industry base, after the government announced loans and many other benefits for MSMEs. . Start-ups and small businesses are doing this to achieve liquidity through loans as well as the rest of the benefits. But experts say that getting a loan is a bit difficult.
How much loan
According to a government official, by the end of February, a maximum of 20% of the credit outstanding on the firm will be given. In addition, the outstanding loan should be at least 60 days before that date. According to the official, tremendous response is being seen in the case of loans, as the firm will not have any guarantee on this loan.
