Banks have disbursed about 49% of Rs 1,14,502.58 crore loans they sanctioned as on July 4 to small businesses under the Emergency Credit Line Guarantee Scheme (ECLGS), a component of the Rs 20 lakh crore economic stimulus package that was launched by the government in mid-May.
“As of July 4, 2020, the total amount sanctioned under the 100% Emergency Credit Line Guarantee Scheme by #PSBs [public sector banks] and private banks stands at Rs 1,14,502.58 crore, of which Rs 56,091.18 crore has already been disbursed,” finance minister’s office said in a tweet on Tuesday.
The Rs 3 lakh crore emergency credit facility was announced by the finance minister on May 13 as a part of the Aatmanirbhar Bharat Abhiyan.
It provides for an additional working capital loan at a concessional rate of interest to an existing borrower who is not a defaulter.
In comparison, private banks sanctioned loans to 4,28,014 accounts and loan was disbursed in about 36% cases.