Banks’ ECLGS disbursal stands over Rs 2 lakh cr till mid-July

ECLGS scheme was announced under the Atmanirbhar Bharat Abhiyan where MSMEs can avail the scheme where loans are backed by guarantee.

Photo by on Unsplash

Banks have sanctioned Rs 2.76 lakh crore till mid-July under the Emergency Credit Line Guarantee Scheme (ECLGS)

The PM SVANidhi scheme which provides loans to Rs 10,000 to street vendors has seen over outgo of Rs 2500 to 25 lakh vendor, although the internal target was more ambitious with banks nudged to give loans.

The ECLGS scheme was expanded from Rs 3 lakh crore to Rs 4.5 lakh crore as the demand and scope was widened.

More than 1.1 crore MSMEs borrowers have availed the facility amounting to Rs 1.65 lakh crore.

Parliamentary standing committee on industry highlighted that there’s a huge gap between sanctions and disbursals as banks feared defaults in the wake of second wave of Covid-19 pandemic and only half the amount has been delivered to small businesses.