Govt Schemes for MSMEs & NBFCs creating significant impact

25 June 2020: Under the Emergency Credit Line, backed by a Government guarantee, banks from public and private sectors have so far already sanctioned loans worth over Rs.79,000 crore as of June 20, 2020. Out of which more than Rs 35,000 crore has already been disbursed.

The top lenders under the Scheme are SBI, HDFC Bank, Bank of Baroda, PNB and Canara Bank. This has helped 19 lakh MSMEs and other businesses restart their businesses post the lockdown. As part of the Aatmanirbhar package Government had announced its plans for Rs.3 lakh Crore as additional credit to MSMEs and small businesses. Such enterprises were to be eligible to receive upto 20% of their existing borrowing as additional loans at interest rates which were capped.

Separately, under RBI’s Special Liquidity Facility announced in March-April, 2020, SIDBI has sanctioned over Rs.10,220 crore to NBFCs, micro finance institutions and banks for lending to MSME and small borrowers.