PSBs sanctioned loans Rs 5.85 lakh crore to 46.74 lakh for MSME Loans
Finance Minister Nirmala Sitharaman tweeted on Tuesday that, ‘Public Sector Banks (PSBs) approved lending of Rs 5.85 lakh crore to 46.74 lakh account holders of MSME, retail, agriculture and corporate sector from March 1 to May 8, 2020. Whereas during this period, Rs 1.18 lakh crore was made available to NBFCs.
10% additional loan based on working capital limit
- With the lockdown commencing from 25 March in the country, PSB introduced a 10 per cent additional loan facility based on the working capital limit.
- Under this, the maximum limit was fixed at Rs 200 crore.
- In another tweet, Sitharaman said that ‘From March 20 to May 8, PSB approached 97 per cent of the eligible borrowers for the emergency lending facility and enhanced working capital limit and they were given loans worth Rs 65,879 crore.’
Lockdown Till May 17
- The central government first announced a nationwide lockdown of 21 days from March 25 for the prevention of Coronavirus.
- Thereafter a second phase lockdown was imposed from 15 April to 3 May.
- In the third phase, the lockdown has been extended from May 4 to May 17 with some relaxation.
MSME Loans For New Business
- Government will facilitate Provision of Rs. 20,000 Crore as subordinate debt.
- 2 Lakh Crore MSMEs are likely to benefit.
- Eligibility: Functioning MSMEs that are NPA or Stressed.
- Govt. will provide a support of Rs. 4000 Crore to CGTMSE.
- CGTMSE will provide partial credit guarantee support to Banks.
- Promoters of MSME will be given debt by banks, which will be infused by the promoter as equity in the Unit.
- Public sector banks loaned MSME Loans of Rs 5.95 lakh crore during the last two months for various sectors, including MSME (micro, small and medium enterprises), retail, agriculture and corporate affected due to the ongoing lockdown for Coronavirus epidemic and its prevention.