SBI sanctions Rs 150 billion loan to MSMEs
State Bank of India has approved Rs 150 billion loan to MSMEs and disbursed Rs 87 billion under the Rs three trillion Emergency Credit Line Guarantee Scheme (ECLGS), according to a PTI report.
As per the directions of the finance ministry, SBI and other banks rolled out the Guaranteed Emergency Credit Line (GECL) loan product to support MSMEs and business enterprises. ECLGS is the biggest fiscal component of the mega Rs 20-lakh crore package announced last month.
Under the scheme, 100 per cent guarantee coverage is being provided by the National Credit Guarantee Trustee Company (NCGTC) for additional funding of up to Rs trillion to eligible MSMEs and interested MUDRA borrowers in the form of a GECL facility.
In May 2020, during the first tranche of the government鈥檚 special economic package announcement, the Finance Minister Nirmala Sitharaman had introduced the Rs three trillion collateral-free automatic loans.
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